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Price & Volume are considered king of chart analysis 👑
Why? Because all indicators get constructed by combining them
Let understand:
🔸What is volume
🔸How it confirms trends
🔸Relation to liquidity
🔸Relation with breakouts
A thread🧵👇#TechnicalTuesday #LearnWithICICIDirect
Why? Because all indicators get constructed by combining them
Let understand:
🔸What is volume
🔸How it confirms trends
🔸Relation to liquidity
🔸Relation with breakouts
A thread🧵👇#TechnicalTuesday #LearnWithICICIDirect
[1] What is Volume?
Volume refers to the number of shares or contracts traded in a given period of time.
Ex: A stock had 5 trades in a day
1. 10sh @₹500/sh🔼
2. 5sh @₹490/sh🔽
3. 20sh @₹550/sh🔼
4. 15sh @₹500/sh🔽
5. 30sh @₹510/sh🔼
Total volume for the day - 80 shares
Volume refers to the number of shares or contracts traded in a given period of time.
Ex: A stock had 5 trades in a day
1. 10sh @₹500/sh🔼
2. 5sh @₹490/sh🔽
3. 20sh @₹550/sh🔼
4. 15sh @₹500/sh🔽
5. 30sh @₹510/sh🔼
Total volume for the day - 80 shares
[2] Trend Confirmation
👉An increase in trading vol. can often be associated with an increase in buying/selling pressure
👉This, in turn, leads to a corresponding increase in the price of a stock
👉If a comp. reports expected < earnings, it may attract a higher trading volume
👉An increase in trading vol. can often be associated with an increase in buying/selling pressure
👉This, in turn, leads to a corresponding increase in the price of a stock
👉If a comp. reports expected < earnings, it may attract a higher trading volume
Is the company you’re invested in generating value?💹
Let us look at a detailed method to calculate this return 🔎
The DuPont way!
A thread🧵👇 #LearnWithICICIDirect #FundamentalFriday
Let us look at a detailed method to calculate this return 🔎
The DuPont way!
A thread🧵👇 #LearnWithICICIDirect #FundamentalFriday
[1] What is DuPont?
🔶DuPont is an American chemical MNC
🔶Started as a supplier of gunpowder in 1802
They introduced the DuPont method for calculating Return on Equity in the 1914
This was eventually adopted by car majors like Ford
🔶DuPont is an American chemical MNC
🔶Started as a supplier of gunpowder in 1802
They introduced the DuPont method for calculating Return on Equity in the 1914
This was eventually adopted by car majors like Ford
[2] DuPont ROE method
🔸Introduced in 1914
🔸To bring internal efficiency to the company
🔸Formed by explosive salesman Donaldson Brown who eventually became the CFO of General Motors
How is it calculated?🤔
Confusing? Let’s break it up in the thread below👇
🔸Introduced in 1914
🔸To bring internal efficiency to the company
🔸Formed by explosive salesman Donaldson Brown who eventually became the CFO of General Motors
How is it calculated?🤔
Confusing? Let’s break it up in the thread below👇
Here is the next part of our series on Fundamental Analysis📈
Let's learn about Discounting Future Cash Flows & DCF Model of valuation
A thread 🧵👇#LearnwithICICIDirect
Let's learn about Discounting Future Cash Flows & DCF Model of valuation
A thread 🧵👇#LearnwithICICIDirect
[A] What is Discounting?
Discounting is the method of determining present value of future payments/inflows.
It helps us to factor time value of money.
The value of INR 1,00,000 is more today vis-à-vis having the same amount 10 years down the line
Discounting is the method of determining present value of future payments/inflows.
It helps us to factor time value of money.
The value of INR 1,00,000 is more today vis-à-vis having the same amount 10 years down the line
[B] What are Cash flows (CF)?
CF are the cash generated by business. CF can be from operating, investing or financing activities
CF are the cash generated by business. CF can be from operating, investing or financing activities
Infosys' ADR has fallen by ~9.8% after Q4FY23 results📉🔻
We maintain a BUY rating, but have reduced our target
In this thread we discuss:
🔸Results
🔸Guidance
🔸Our view and
🔸TARGET
A thread🧵👇
#Infosys #LearnWithICICIDirect #ICICISecurities
We maintain a BUY rating, but have reduced our target
In this thread we discuss:
🔸Results
🔸Guidance
🔸Our view and
🔸TARGET
A thread🧵👇
#Infosys #LearnWithICICIDirect #ICICISecurities
[1] Revenue Growth – Q4FY23
In CC terms:
🔸Grew 8.8% YoY📈
🔸Dropped 3.2% QoQ📉🔻
🔸Major miss from our estimates of +0.1%/0.3% QoQ CC growth
🔸This resulted in miss in FY23 revenue growth at 15.4% YoY CC vs guidance of 16-16.5%
🔸Due to unplanned project ramp downs
In CC terms:
🔸Grew 8.8% YoY📈
🔸Dropped 3.2% QoQ📉🔻
🔸Major miss from our estimates of +0.1%/0.3% QoQ CC growth
🔸This resulted in miss in FY23 revenue growth at 15.4% YoY CC vs guidance of 16-16.5%
🔸Due to unplanned project ramp downs
[2] EBIT Margins - 21% for Q3FY23
🔸Decline of 0.5% QoQ
🔸Decline of 0.6% YoY
🔸Decline in margin was due to dip in utilisation and unexpected fall in revenue
🔸Margins are lower by 50 bps QoQ from our estimates of 21.5%/21.7%
🔸Decline of 0.5% QoQ
🔸Decline of 0.6% YoY
🔸Decline in margin was due to dip in utilisation and unexpected fall in revenue
🔸Margins are lower by 50 bps QoQ from our estimates of 21.5%/21.7%
How to read an option chain (Introduction) - Basic Level
A thread ✍️🧵
1/n #LearnwithICICIDirect
This thread covers different terms associated with an option chain excluding greeks that will be covered later.
A thread ✍️🧵
1/n #LearnwithICICIDirect
This thread covers different terms associated with an option chain excluding greeks that will be covered later.
2/n
Option Chain is divided into 2 parts:
1⃣Calls (Ce)
2⃣Puts (Pe)
2/n
When to buy Call vs Put:
🔸Call: When a trader is expecting the market to go up
🔸Put: When a trader is expecting the market to go down
Remember, one can also sell an option strike instead of buying:
Option Chain is divided into 2 parts:
1⃣Calls (Ce)
2⃣Puts (Pe)
2/n
When to buy Call vs Put:
🔸Call: When a trader is expecting the market to go up
🔸Put: When a trader is expecting the market to go down
Remember, one can also sell an option strike instead of buying:
3/n
🔸If you expect the market to go down you can sell a Call option rather than buying a Put option
🔸If you expect the market to go up you can sell a Put option rather than buying a Call option
If someone is:
🔸Bullish - Buy Call/Sell Put
🔸Bearish - Buy Put/Sell Call
🔸If you expect the market to go down you can sell a Call option rather than buying a Put option
🔸If you expect the market to go up you can sell a Put option rather than buying a Call option
If someone is:
🔸Bullish - Buy Call/Sell Put
🔸Bearish - Buy Put/Sell Call
Introduction to candlestick - Part 2
A thread ✍️🧵
Here we explain advanced application of candlesticks. Incase you have missed Part 1, visit here:
So grab a cup of coffee and start.
#LearnwithICICIDirect
1/n
A thread ✍️🧵
Here we explain advanced application of candlesticks. Incase you have missed Part 1, visit here:
So grab a cup of coffee and start.
#LearnwithICICIDirect
1/n
2/n
1. Hammer
A hammer is a bullish trend reversal single candlestick that forms after a correction. It indicates a change in trend, i.e. from downtrend📉 to uptrend📈.
The candlestick has a long lower wick with a short body and little to no upper wick
1. Hammer
A hammer is a bullish trend reversal single candlestick that forms after a correction. It indicates a change in trend, i.e. from downtrend📉 to uptrend📈.
The candlestick has a long lower wick with a short body and little to no upper wick
3/n
Chart view - highlighted candle
🔸A long wick indicates a weak trading session where sellers pushed prices down during the session.
🔸However, the green candle finish shows that buyers entered to end the session strongly.
Chart view - highlighted candle
🔸A long wick indicates a weak trading session where sellers pushed prices down during the session.
🔸However, the green candle finish shows that buyers entered to end the session strongly.
Want to learn investing from scratch? 🤔
Here is the 2nd part of our series on Fundamental Analysis📈
Let’s learn about Revenue, Cost, Taxes, EPS and many more
Let's understand a Profit & Loss Account
A thread 🧵👇 #LearnwithICICIDirect
Here is the 2nd part of our series on Fundamental Analysis📈
Let’s learn about Revenue, Cost, Taxes, EPS and many more
Let's understand a Profit & Loss Account
A thread 🧵👇 #LearnwithICICIDirect
[A] What is Profit & Loss Account (P&L)?
🔶It is a statement of Company's Revenue, Cost & Profitability
🔶Simply, it's a snapshot of what Company earns and how it spends money
🔶It is prepared for the specific period
🔶Also known as Income Statement
Check out the image👇
🔶It is a statement of Company's Revenue, Cost & Profitability
🔶Simply, it's a snapshot of what Company earns and how it spends money
🔶It is prepared for the specific period
🔶Also known as Income Statement
Check out the image👇
[B] What are the Components of BS?
🔶Income: How much the company earns
🔶Expenses: How much the company spends
🔶Profit/Loss: Net earning of the Company
Mathematically,
Income - Expenses = Profit/Loss
Let's understand in detail
Contd.
Check out below image 👇
🔶Income: How much the company earns
🔶Expenses: How much the company spends
🔶Profit/Loss: Net earning of the Company
Mathematically,
Income - Expenses = Profit/Loss
Let's understand in detail
Contd.
Check out below image 👇
2/
Candlestick charts is one of the oldest trading techniques. They're referred as "Japanese candles" because the Japenese would use them to analyse the price of rice contracts.
A rice trader named Homma from Sakata deserves much of the credit for candlestick development.
Candlestick charts is one of the oldest trading techniques. They're referred as "Japanese candles" because the Japenese would use them to analyse the price of rice contracts.
A rice trader named Homma from Sakata deserves much of the credit for candlestick development.
3/
Over many years of trading, it's likely that his original concepts were altered and improved, eventually leading to the candlestick charting system that we use today.
But many of the guiding principles remained the same throughout the years 👇
Over many years of trading, it's likely that his original concepts were altered and improved, eventually leading to the candlestick charting system that we use today.
But many of the guiding principles remained the same throughout the years 👇
With $180B in deposits, SVB was as large as HDFC Bank which has deposits of ~₹15L cr. However, in reality, it's scale is similar to IndusInd Bank (₹3.3L cr).
How?🤔
Let's explain Purchasing Power Parity💡- the great equalizer! 👇
1/n #LearnwithICICIDirect
How?🤔
Let's explain Purchasing Power Parity💡- the great equalizer! 👇
1/n #LearnwithICICIDirect
2/
What is PPP?
PPP compares a country's relative cost of goods/ services with its inflation to reflect the relative purchasing power of its currency.
It is basically the rate at which currency of one country is exchanged for another to buy the SAME amount of goods & services.
What is PPP?
PPP compares a country's relative cost of goods/ services with its inflation to reflect the relative purchasing power of its currency.
It is basically the rate at which currency of one country is exchanged for another to buy the SAME amount of goods & services.
3/
History of PPP
PPP came into existence after WW I.
Earlier, most countries relied on Gold standard - exch. rate was based on how much gold a country's currency was worth.
Countries abandoned GS to pay for the war & printed all the money they needed, which led to inflation.
History of PPP
PPP came into existence after WW I.
Earlier, most countries relied on Gold standard - exch. rate was based on how much gold a country's currency was worth.
Countries abandoned GS to pay for the war & printed all the money they needed, which led to inflation.
Want to learn investing from scratch?🤔
Starting a series on Fundamental Analysis📈
Financial Statements majorly consist of:
🔶Balance Sheet
🔶Profit & Loss a/c
🔶Cash Flow Statement
Let's begin this series by understanding a Balance Sheet
A thread 🧵👇 #LearnwithICICIDirect
Starting a series on Fundamental Analysis📈
Financial Statements majorly consist of:
🔶Balance Sheet
🔶Profit & Loss a/c
🔶Cash Flow Statement
Let's begin this series by understanding a Balance Sheet
A thread 🧵👇 #LearnwithICICIDirect
[A] What is Balance Sheet (BS)?
🔶 It is a statement of Co's Assets, Liabilities & Equity
🔶 Simply, it is the snapshot of what the Company owns and what it owes
🔶 It is prepared on a specific date
Check out the below image 👇
🔶 It is a statement of Co's Assets, Liabilities & Equity
🔶 Simply, it is the snapshot of what the Company owns and what it owes
🔶 It is prepared on a specific date
Check out the below image 👇
[B] What are the Components of BS?
🔶Assets - What Company owns
🔶Liabilities - What Company owes to outsiders
🔶Equity - What Shareholders owns
Mathematically,
Assets = Liabilities➕equity
Let's understand these parts in detail
Contd.👇
🔶Assets - What Company owns
🔶Liabilities - What Company owes to outsiders
🔶Equity - What Shareholders owns
Mathematically,
Assets = Liabilities➕equity
Let's understand these parts in detail
Contd.👇
