Indian share market is one of the most volatile share markets in the world, that is why SEBI is so strict and demanding in terms of compliance. This website is meant for technical analysis only, as we dont follow news much, its only the quarterly results and the normal news related to stocks like bonus and splits important for us, some news, like recent SEBI declaring a scam done by prominent share brokers, this type of news comes very rarely but if it comes then it is by chance and techncial analysis does not follow by chance news.

Technical analysis follows mathetical methods like statistics and technical analysis involves lot of stats, which is performed automatically by the softwares, like Metastock Professional, supercharts, tradestation, Advanced Get, and so on.

I use Metastock Professional (my trading terminal also has analysis features, I use both.) only for my technical analysis for stocks in NSE, and I get data using my own custom made software called METQUOTES which sell for Rs5400/yearly license, using the software I download indian share market end of day prices using METQUOTES into my hard drive which includes Cash market data, Futures and Indices data of NSE, it automatically connects to www.nseindia.com and downloads the data.

I then use my metastock professional and also run some reports in the METQUOTES software, in the reports which are around 10 types of reports I find the best stocks for next day trading and then I open their charts in metastock professional and then using my technical analysis techniques I caluclate their resistance and support levels.

This is not all, using my broker's trading terminal I put all the alert levels on the share on which I just did the analysis the next morning before market opens and only enter in the market after 10:15am, any trigger which happens before 10:15am i dont follow it at all, coz first 20minutes of the market are very volatile and I dont want to loose money in the share market just because of volatility, as its very difficult to trade in the first 20minutes of the market, which is basically a fluke for many.

After 10:15am if i get any alerts in my trading terminal then I open that share's intra-day chart in my trading terminal software and see the stock pattern and make trade according to that, most of the time I dont see the graph I just buy/sell the stock since my analysis in the end-of-day stocks is pretty accurate and I always get some profits in a few minutes and thats a small secret to do intra-day trading.(buy at breakouts and exit fast)
I take position in the share the moment it breaks on the upside its resistance or on the downside once it breaks its support.This is one my favourite techniques and also I rely on this method too to provide calls to my clients.
There are many other calculations and pattern analysis I do before entering into the stock, there are some patterns which if you are able to site during the day, then you can enter in it without any doubt and come out with money.(risk will always be there)

Our indian share market sometimes gets so choppy during the trading day that sometimes we are not able to take position in the market or the share moves in both directions touches the resistance and comes down and touches the support and moves up, so such a market I always wait for a top or a bottom to form first, and then decide what to do, and i always go with the index I make sure I dont go against the index.

I hope this article gives you a small picture on how to trade in this Big share market.

(Article By Mohit Thapar, posted on May 13th, 2006 ; email:- mohit.thapar at gmail.com)

This is a property of Bookprofit.com, you will need permission from Bookprofit.com to republish it on any website or on any paper material.