B a s i c T e c h n i c a l A n a l y s i s

f o r S t o c k I n v e s t i n g

Unpreparedness
is the recipe for failure

Sarvesh Srivastava
Foreign
Markets
 Foreign Markets
On February 16th, the Dow
Jones index opened at
34,951.83 points, down 0.11%.

The S&P 500 index opened at

4,455.75 points, down 0.34%.

The Nasdaq index opened at

14,038.92 points, down 0.71%.
Foreign Markets
Foreign Markets
The current interest rate futures market in
the United States is nearly aligned with
the Federal Reserve's December dot plot
for the end of this year - policymakers'
median forecast corresponds to three
rate cuts of 25 basis points each in 2024,
and current derivative contract pricing
also reflects the same magnitude, with
only a small likelihood of a fourth rate cut.
At the end of last year, traders had once
bet on seven rate cuts for this year.
Domestic
Stock Market
Domestic Stock Market
 Domestic Stock Market
In the backdrop of a subdued global market sentiment, the domestic stock market benchmark Nifty50 rose by 131
points, or 0.6%, to reach a historic high of 22,171.8 points, surpassing the previous peak of 22,126.8 points set on
February 2nd. The streamlined 30-stock index Sensex also rose by 400.7 points, reaching 72,827.3 points, less than
600 points away from its historical high on January 16th. Key triggering factors summarized as follows:

1. Improved Corporate Profitability: Third-quarter earnings indicate impressive growth in EBITDA and post-tax profits
of Indian companies, particularly notable in the automotive, pharmaceutical, and capital goods sectors, despite
modest sales growth.

2. Credit Growth in the Banking Sector: Banks continue to see growth in credit and profitability, with PSU banks
maintaining fair valuations even after price hikes, outperforming private sector banks.

3. Energy Sector Driving Growth: With the exception of Hindustan Petroleum and GSPL, all stocks in the Nifty Oil & Gas
sector saw trading gains of up to 4% on Monday, making the Nifty Oil & Gas index one of the top three NSE sector
indices with a 15.7% increase over the past month.

4. Strong Performance of Other Sector Indices: The Nifty PSU Bank and Nifty Healthcare indices rose by 20% and 10%
respectively in the past month, demonstrating robust performance.
EASY MONEY
 EASY MONEY
In different periods, the market will always present some
very profitable opportunities:
2017-2018: Consumer goods and financial services
2018-2019: Information technology and pharmaceuticals
2019-2020: Infrastructure and energy
2020-2021: Technology and healthcare
2021-2022: Electronics and clean energy
2022-2023: AI technology industry
2023-2024: ???
Making the wrong choice not only fails to realize profits
but may also result in losses.
 EASY MONEY
Seat trading holds a special status in the financial markets, primarily due to the unique nature of
seats and their relationship with exchanges. Here are some of the special statuses of seat trading:

Trading eligibility and privileges: Holding a trading seat implies qualification to trade and settle securities on the
relevant exchange. This grants seat holders the privilege to directly participate in market transactions, enabling
them to access market information in real-time and execute buying and selling activities on the exchange.

Speaking rights and influence: Seat holders typically have the right to speak in exchange decisions. This right
gives seat holders a certain level of influence in the market.

Market access threshold: Seats are often seen as a threshold for market access because only members holding
seats can directly participate in trading. This makes seats a limited resource, with their supply restricted, thereby
increasing the scarcity and uniqueness of seats.

Value of seats: Since seats represent the qualification to trade directly in the market, seats themselves have a
certain intrinsic value. This makes seat trading an investment activity, with some investors seeking to acquire
special trading privileges and powers by purchasing seats.
 EASY MONEY
Stock investment is not just about focusing on the short-term ups and downs but understanding
the deeper market profit logic. Currently, institutional investors are driving stock prices higher
through consecutive limit-up movements, earning huge profits in the market. Seat trading is the
key to accessing "EASY MONEY".

Institutional investors' limit-up strategy: Utilizing consecutive limit-up movements to boost

stock prices and gain massive profits.

Key role of seat trading: Direct market participation; executing trades in real-time.

Operational platform and informational advantage: Unique perspective and rapid response
capability provided by seats.
 EASY MONEY
Facing the profit potential of seat trading, retail investors have various ways to
participate and benefit from it:

1. Investing through financial products: Retail investors can indirectly participate in

seat trading by investing in financial products offered by institutional investors, such as
specific funds or ETFs (Exchange-Traded Funds). These institutions typically hold seats in
multiple exchanges and generate profits through their professional operations. As an
investor, you can also share in these profits.

2. Acquiring stock accounts with seat trading capabilities: Some financial institutions,
such as Viking Global Investors, offer retail investors investment accounts with privileges
typically reserved for professional investors, including seat trading functionality. These
accounts allow retail investors direct access to opportunities in seat trading, leveraging
professional-grade tools and data analysis to enhance profit potential.
Learning
by Doing
Learning by Doing
The trading volume is gradually increasing, with not much
change in price. Overall, this signal is bullish, as shown in
the chart. The stock formed a bullish signal in the first stage
and continued to rise in the second stage.
Learning by Doing
Increasing trading volume and rising prices indicate a
buying signal. This is the best buying signal for the
mid-term to short-term. If you can buy at the bottom
of the rally, the safety factor is very high.
Learning by Doing
After a long period of oscillation at the bottom of the market,
the price breaks out of the trading range, while the trading
volume at the bottom starts to surge massively. With
increased volume comes rising prices, and this massive
volume often signifies large institutions entering the market
to absorb chips. Following a period of oscillation, the
market subsequently sees a significant upward trend.
Learning by Doing
The trading volume shows no significant fluctuations, but
the price continues to rise steadily. It may be appropriate
to increase positions accordingly, with the specific extent
of the additional investment determined by the distance
between the current price and the bottom of the stock.
Learning by Doing
"Volume decreasing while price rises" refers to a situation
where the trading volume decreases, but the price
increases. This typically indicates high control of the chips
by institutions.
 Learning by Doing
The trading volume has decreased, but the price still
remains within a certain range, without much
fluctuation. The more this occurs at high levels, the
more attention we should pay. Because at high levels,
a decrease in volume implies weakening sentiment,
and weakened sentiment can quickly lead to a sharp
decline.
Learning by Doing

The trading volume decreases, and the stock price falls.

This is a clear sell signal. Decreasing volume with price decline is as strong
as increasing volume with price rise. However, the magnitude of reduction in
positions should be greater than the magnitude of adding positions.
Therefore, when there is a decrease in volume accompanied by a price
decline, it is best to sell out completely!
Learning by Doing
Volume is flat while prices continue to fall, continue
selling. If the trading volume remains flat while prices
keep declining, and if you haven't sold out yet, sell
all your holdings. If you have already sold, then
maintain a watchful stance.
Learning by Doing
This kind of market situation is relatively rare, where trading volume
increases while prices fall. It usually occurs in the short term, and it's
unlikely to happen in the medium to long term. There are two positions
where this situation is likely to occur: first, during a rebound in a
downtrend, and second, at the bottom of a downtrend.
Thank you

Sarvesh Srivastava