1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Chart analysis

Discussion in 'Introductions' started by basantv2011, Jan 10, 2014.

  1. basantv2011

    basantv2011 New Member

    Joined:
    Dec 30, 2013
    Messages:
    15
    Likes Received:
    1
    Hi Shabbir,

    I read one of your post where you said chart tells about the news. Is it possible to predict the Quarterly result of any company by looking at the chart? If so can you explain me with an example does Infosys chart till 09/01 indicates the rally today?

    Thanks,
    --Basant
     
    basantv2011, Jan 10, 2014
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Always Basant. Infact play is always runup to the news (read result) and when the results are good the stock actually tanks because everyone knows that and that is when Retail investors are trapped.

    Read this - http://shabbir.in/buying-stock-better-results/
     
    shabbir, Jan 10, 2014
    Share #2
  3. saptarshi_sachin

    saptarshi_sachin Responder

    Joined:
    Jul 20, 2013
    Messages:
    285
    Likes Received:
    73
    Thanks for the link, I hadn't seen before :)


    "when the results are good the stock actually tanks because everyone knows that" - Not always, there are very few exceptions, Infosys for example, post results, always goes in a +ve direction when good results come out, and tanks when results that have come out are bad.
     
    saptarshi_sachin, Jan 10, 2014
    Share #3
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    It happens if the expectation is not good but then the result is good. So if there is nothing good is expected out of next result of Infosys, it will not have a positive run up to the result and so the results is a news.

    If there is always a good results expected for any stock like Nestle, it will have a phenomenal run up to the result and so the results is a news where retail investors jump into the stock and savvy investors book profit.

    I hope it clears things up.
     
    shabbir, Jan 11, 2014
    Share #4