CHAITANYA SHARE MARKET CLASSES.

SOMNATH DAIRY BULDING, ANAND NAGAR, SINHAGAD ROAD,PUNE

Contact No -: 9021 336 336, 8805560050.
----------------------------------------------------------------------------------------

Share market advance course.

Share market technical analysis course.

 Types of Analysis

• Fundamental Analysis

• Technical Analysis.
Fundamental Analysis

• BALANCESHEET
• P & L ACCOUNT
• PRODUCT
• SECTOR
• ORDER BOOK
• MANAGEMENT
• SHARE HOLDING PATTERNS.
 TO MAXIMIZE PROFIT

TO MINIMIZE LOSS
WHAT IS SUCCESS RATIO ?
IN SHORT TERM TREND 50 - 60 %
IN LONG TERM TREND 60 - 70 %
 DAILY SESNITIVE PRICE DATA
OPEN –This is the first trading price of the day
HIGH – This is the highest trading price of the day
LOW – This is the lowest trading price of the day
CLOSE – This is last 15 Min Trading Average.
VOLUME – This the number of total shares
traded end of the day
 PRICE STYLES
1. LINE CHART – A line chart simply
connects the closing prices from one
period to the next period. 5949
5926
5916
DATE CLOSE
5906
30/11/12 5906
03/12/12 5916
04/12/12 5926
05/12/12 5949
 PRICE STYLES
2. BAR – A bar chart displays a shares all
sensitive figures.
21 /11 / 12 5628
H

C
O = 5590 5620

H = 5628
5590 O
L = 5569
L
C = 5620 5569
14 / 12 / 12 PRICE STYLES

931
O = 882 H

H = 931
C 913

L = 875 882 O

C = 913
L
875
26 / 09 / 12 PRICE STYLES

940
O = 917 H

C 936
H = 940
L = 915 O
917
C = 936
L
915
 PRICE STYLES
03 / 10 / 12

1028
H

O = 1023 1023 O

H = 1028
L = 990 C 994
C = 994
L
990
 PRICE STYLES
16 / 10 / 12

221
H

O = 219 219 O

H = 221
L = 207 C 208
L
C = 208 207
07 / 05 / 12 PRICE STYLES

687
O = 675 H

H = 687
C 684

L = 666 675 O

C = 684
L
666
26 / 06 / 12 PRICE STYLES

193
O = 191 H

H = 193 191 O C 191

L = 188
C = 191 L
188
25 / 06 / 12 PRICE STYLES

O = 762
H = 774
L = 736
C = 730
 PRICE STYLES
3. JAPANESE CANDLESTICKS – It shows shares all
sensitive figures & specially open – close relation.
relation.
GREEN CANDLE – A candlestick is GREEN when the
23 /11 / 06closing price is higher than the opening price.
1510 HIGHEST PRICE
UPPER SHADAWO
O = 1466 CLOSING PRICE
1493
H = 1510 REAL BODY
L = 1448 1466 OPENING PRICE
C = 1493 LOWER SHADAWO
1448 LOWEST PRICE
29 / 05 / 09 PRICE STYLES

O = 93 99 HIGHEST PRICE

H = 99
CLOSING PRICE
98

L = 92 93 OPENING PRICE

92 LOWEST PRICE
C = 98
17 / 04 / 09 PRICE STYLES

O = 50 61 HIGHEST PRICE

H = 61 57 CLOSING PRICE

L = 50 50 OPENING PRICE =
LOWEST PRICE

C = 57
 PRICE STYLES
RED CANDLESTICK – A candlestick
is RED when the closing price is lower than the opening price.
price.

19 /12 / 06 1279 HIGHEST PRICE

1270 OPENING PRICE
O = 1270
H = 1279
L = 1215
1229 CLOSING PRICE
C = 1229 1215 LOWEST PRICE
 12 / 06 / 09 PRICE STYLES

O = 1710
1723 HIGHEST PRICE
H = 1723 OPENING PRICE
1710
L = 1626
1634 CLOSING PRICE
C = 1634 1626 LOWEST PRICE
 12 / 03 / 09
PRICE STYLES

O = 934
H = 934 OPENING PRICE =
934 HIGHEST PRICE

L = 897
911 CLOSING PRICE
C = 911 897 LOWEST PRICE
13 / 06 / 08
PRICE STYLES
1390
H
O = 1362
H = 1390
1362 O C 1362
L = 1310
C = 1362 L
1310
Reading The Signals
 GREEN CANDAL
Real Body -:
Close is higher than Open.
Upper shadow -:
Difference Between High and Close.
Lower Shadow -:
Difference Between Low and Open.
 RED CANDAL
Real Body -:
Close is lower than open.
Upper shadow -:
Difference Between High and open.
Lower Shadow -:
Difference Between Low and close.
 Reading The Signals

upper shadow = Realbody Neutral Candles

 Reading The Signals

upper shadow > Realbody Bearish Candles

 Reading The Signals

Realbody > Upper & Lower Shadow Bullish Candles

 Reading The Signals

Lower shadow = Realbody Neutral Candles

 Reading The Signals

Lower Shadow > Realbody Bullish Candles

 Reading The Signals

Realbody > Lower & Upper Shadow Bearish Candles

 Reading The Signals

Lower Shadow > Realbody Strong Bullish Candles

 Reading The Signals

upper shadow > Realbody Strong Bearish Candles

Reading The Signals

Bulls & Bears Following day’s , a

perfect candle will
Are equaling
decides the trend

Doji
• Buy Reliance @ 1500 Target
1700 and Stop loss 1400
 Support and Resistance
( Demand Zone & Supply Zone)
• If any stock break its Resistance line next
time Resistance work as a Support
(Positive Breakout)

• If any stock break its Support line next

time Support work as a Resistance
(Negative Breakout)
 140
124

100
90
88
• Historical Chart 3 Month
• Investment Period 1 Month ( Approx.)
• One Month Sharp Downfall
• 20% recover ( Res 140 Support 90 So
Difference is 50 so 20% on 50 means 10
Rs)
• Stop loss 2% Below Resent Support Level
• Target Risk X 2
• Resistance – Support 3315-1788 = 1527
• Difference Between Resistance & Support is 1527
• 20% Recovery on 1527 means 305
• Buy point = Support + 20% Recovery 1788+305 =
2093
• Stop loss 2% Below support 1788 - 35 = 1753
• Target Risk X 2
• If Stop loss hit Risk is 340 Point so Target is
340x2= 680 Point
• Target is 2093+680= 2773
 Bullish Engulf

Q 100 - B

S.L.196--198
S.L.196
• Historical Chart 1 Month
• Investment Period 15 Day ( Approx. )
• Buy Point Next Day Opening Price After
Formation Day.
• Target 4% to 5% From Buy Price.
• Stop loss 0.5% Below Formation Low.
 BULLISH ENGULFING
• Definition :- Bullish Engulfing Pattern is a
pattern characterized by a large white real
body engulfing a preceding small black
real body, which appears during a
downtrend.
• The Bullish Engulfing Pattern is an
important bottom reversal signal.
 BULLISH ENGULFING
• Recognition Criteria :-
1. Market is characterized by
downtrend.
2. Then we see a small black body.
3. Next day we see a white body that
completely engulfs the black real body
of the preceding day.
 Bullish Piercing

Q 250 - B

SL 2210 / 2220
 BULLISH PIERCING
• Definition :- A bullish two day reversal
pattern. The first day, in a downtrend, is a
long black day. The next day opens at a
new low, then closes above the midpoint
of the body of the first day.
 BULLISH PIERCING
• Recognition Criteria :-
1. Market is characterized by downtrend.

2. We see a long black candlestick.

3. Then we see a long white candlestick whose opening

price is below previous day’s low on the second day.

4. The second day’s close is contained within the first

day body and it is also above the midpoint of the first
day’s body.
Morning Star
 MORNING STAR
• Definition :- A three day bullish reversal
pattern consisting of three candlesticks - a
long-bodied black candle extending the
current downtrend, a short middle candle
that gapped down on the open, and a
long-bodied white candle that gapped up
on the open and closed above the
midpoint of the body of the first day.
 MORNING STAR
• Recognition Criteria:

1. Market is characterized by downtrend.

2. We see a long black candlestick in the first day.

3. Then we see a small body on the second day gapping

in the direction of the previous downtrend.

4. Finally we see a white candlestick on the third day.

Bullish Harami
 BULLISH HARAMI
• Definition: -
Bullish Harami Pattern is
characterized by a small white real body
contained within a prior relatively long black
real body. “Harami” is an old Japanese word
for “pregnant”. The long black candlestick is
“the mother” and the small candlestick is “the
baby”.
 BULLISH HARAMI
• Recognition Criteria:
1. The market is in a bearish mood
characterized by downtrend.

2. Then we see a long black candlestick.

3. We see a white candlestick on the following

day where the small white real body is
completely engulfed by the real body of the first
day.
Hammer At Bottom
 HAMMER
• Definition: -

The Bullish Hammer Pattern is a

significant candlestick that occurs at the
bottom of a downtrend.
 HAMMER
• Recognition Criteria:
1. The market is characterized by a prevailing
downtrend.

2. Then we see a small real body at the upper end of the

trading range. Color of this body is not important.

3. We would like to see the lower shadow at least twice

as long as the real body.

4. There is no (or almost no) upper shadow.

Morning Star
Bullish Harami
Bullish Engulf
Hammer At Bottom
Bullish Harami
Morning Star
Bullish Engulf
Bullish Harami
Bullish Piercing
Bullish Harami
Hammer At Bottom
Bullish Engulf
Bullish Harami
 SL 1274 / 1278
Bearish Engulf

Q 100 - S
 BEARISH ENGULFING
• Definition: -
Bearish Engulfing Pattern is
a large black real body, which engulfs a
small white real body in an uptrend. The
Bearish Engulfing Pattern is an important
top reversal signal.
 BEARISH ENGULFING
• Recognition Criteria:

1. Market is characterized by uptrend.

2. We see a white candlestick in the first day.

3. Then we see a black candlestick that

completely engulfs the real body of the first day.
 SL 200 / 202
Bearish Piercing

Q 200 - S
 BEARISH PIERCING
• Definition: -

A bearish reversal pattern that

continues the uptrend with a long white
body. The next day opens at a new high
then closes below the midpoint of the body
of the first day.
 BEARISH PIERCING
• Recognition Criteria :-
1. Market is characterized by uptrend.

2. We see a long white candlestick.

3. Then we see a long black candlestick whose opening

price is above previous day’s high on the second day.

4. The second day’s close is also below the midpoint of

the first day’s body.
Evening Star
 EVENING STAR
• Definition: -
This is a major top reversal pattern
formed by three candlesticks.
The first candlestick is a long white body; the second
one is a small real body that may be white.
It is characteristically marked with a gap in higher
direction thus forming a star. In fact, the first two
candlesticks form a basic star pattern.

Finally we see the black candlestick. This pattern clearly

shows that the market now turned bearish.
 EVENING STAR
• Recognition Criteria:

1. Market is characterized by uptrend.

2. We see a long white candlestick in the first day.

3. Then we see a small candlestick on the second day

with a gap in the direction of the previous uptrend.

4. Finally we see a black candlestick on the third day.

Bearish Harami
 BEARISH HARAMI
• Definition: -
Bearish Harami Pattern is a two-
candlestick pattern composed of a small
black real body contained within a prior
relatively long white real body. “Harami” is an
old Japanese word for “pregnant”. The long
white candlestick is “the mother” and the
small candlestick is “the baby”.
 BEARISH HARAMI
• Recognition Criteria:
1. Market is characterized by an uptrend.

2. We see a long white candlestick on the first

day.

3. Then we see a black candlestick on the

second day whose real body is completely
engulfed by the real body of the first day.
Inverted Hammer
At Top
 INVERTED HAMMER AT TOP
• Definition: -
Bearish Inverted Hammer Pattern
suggests that prices may be approaching
to a top.
The Inverted Hammer is a small real body
characterized by a long upper shadow,
which gaps away from the prior real body.
 INVERTED HAMMER AT TOP
• Recognition Criteria:
1. Market is characterized by uptrend.

2. We see a white candlestick in the first day.

3. Prices then open with a gap creating a small real body

at the lower end of the trading range on the second day.

4. Upper shadow of the pattern on the second day is

usually at least twice as long as the real body.
Bearish Engulf
Bearish Piercing
Bearish Harami
Bearish Engulf
Bearish Piercing
Bearish Engulf
Bearish Harami
640
INVERTED HEAD
620 & SHOULDER 105 T DAYS
600
580
560
540 RESISTANCE BREAK
520 LINE OUT
500 520 B- 3
480 500 B- 1 P.T. _____
460 T.T. _____
460 B- 2
440
420
• Buy Point 612 ( 2% Above Resistance
Line.
• Stop loss 588 ( 2% Below Support Line)
• X = Resistance line – Formation Low
• X= 600-460
• X = 140
• PT = Resistance line + X
• PT = 600 + 140 = 740
• Exit Point 725 ( 2% Below PT )
• TT = Time Target
• TT = Day Formation / 3
• TT = 105/3
• TT = 35 Working Day
230
RESISTANCE
220 ROUNDING BOTTOM LINE
210
180 T DAYS
200
190
180
170
BREAK
160
OUT
150
P.T. _____
140
130 T.T. _____
120
• Buy Point 204 ( 2% Above Resistance
Line)
• Stop loss 196 ( 2% Below Support Line)
• X = Resistance line – Formation Low
• X= 200 - 130
• X = 70
• PT = Resistance line + X
• PT = 200 + 70 = 270
• Exit Point 264 ( 2% Below PT )
• TT = Time Target
• TT = Day Formation / 3
• TT = 180/3
• TT = 60 Working Day
430
420 DOUBLE BOTTOM
410 75 T DAYS
400
390
380
370 BREAK RESISTANCE
LINE
360 OUT
350
340 P.T. _____
340 B- 1 340 B- 2
330 T.T. _____
320
• Buy Point 408 ( 2% Above Resistance
Line)
• Stop loss 392 ( 2% Below Support Line)
• X = Resistance line – Formation Low
• X= 400 - 340
• X = 60
• PT = Resistance line + X
• PT = 400 + 60 = 460
• Exit Point 450 ( 2% Below PT )
• TT = Time Target
• TT = Day Formation / 3
• TT = 75/3
• TT = 25 Working Day
420
410 TRIPPLE BOTTOM
400 75 T DAYS
390
380
380
370 BREAK RESISTANCE
LINE
360 OUT
350
340 P.T. _____
340 340 340
330 T.T. _____
B- 1 B- 2 B- 3
320
 P.T. _____
320
310
UP FLAG T.T. _____
300 180 T DAYS
290
280 290 T
270
260
250 260 B
240
BREAK OUT
230 SUPPORT LINE
220
210 210 B
170 HEAD & SHOULDER
160 160 T- 2
150 150 T- 3
140 T- 1
140
130
120 HEAD
110 L. S. R. S.
100
90 120 T DAYS
80 BREAK OUT
70 SUPPORT LINE P.T. ______
60
T.T. ______
• Sell Point 98 (2% Below Support Line)
• Stop loss 102 (2% Above Resistance Line)
• X = Formation Top – Support Line
• X= 160 - 100
• X = 60
• PT = Support line - X
• PT = 100 - 60 = 40
• Exit Point 41 ( 2% Below PT )
• TT = Time Target
• TT = Day Formation / 3
• TT = 120/3
• TT = 40 Working Day
1150
ROUNDING TOPS
1100
1050
1000

950
900
850
800
750
BREAK OUT
700
P.T. _____
650
600 T.T. _____
310 DOUBLE TOP
300 T- 1 300 T- 2
300
290
280
270
260
250
240
230 90 T DAYS
220
BREAK OUT
210 SUPPORT LINE P.T. _____
200
T.T. _____
310 TRIPPLE TOP
300 300 T- 1 300 T- 2 300 T- 3
290
280
270
260
250
240
230 90 T DAYS
220
BREAK OUT
210 SUPPORT LINE P.T. _____
200
T.T. _____
520520 T
150 T DAYS
510
500
490
DOWN FLAG P.T. _____
480 470 T T.T. _____
470
460
450
440
430 440 B
420
410 SUPPORT LINE BREAK OUT
 Moving Averages
• Daily Closing Prices: 11,12,13,14,15,16,17

• First day of 5-day SMA: (11 + 12 + 13 + 14 + 15) / 5 = 13

• Second day of 5-day SMA: (12 + 13 + 14 + 15 + 16) / 5 = 14

• Third day of 5-day SMA: (13 + 14 + 15 + 16 + 17) / 5 = 15

 Moving Average Convergence-
Divergence (MACD)
• Calculation
• MACD: (12-day EMA - 26-day EMA)

• Signal Line: 9-day EMA of MACD

• MACD Histogram: MACD - Signal Line

 Relative Strength Index
• RSI oscillates between zero and 100.

• RSI is considered overbought when above

70 and oversold when below 30.
 Fibonacci Retracement
• 23.6%
• 38.2%
• 50%
• 61.8%
• 100%
• 127.2%
• 161.8%
• 261.8%
 950

800

650
614
590
500
 Derivative Market
( Future & Option )
 Share Market 9.15 Am to 3.30 Pm Monday to Friday

Equity F&O

Future Option

Index Future Stock Future Call Put

 Commodity Market

9.00 am To 11:30 pm during 10:00 am and 5:00 pm on all

summer and 11:55 Pm during winter MCX NCDEX working days (Monday to Friday).

All Metal All Agriculture Commodity

 Currency Market Monday to Friday From 9:00 a.m. to 5:00 p.m.

Future Option

USD EUR JPY GBP Call Put

 Future Market Important Points
• Buy any stock in future market contact wise (
Lot)
• Futures contracts expire on the last Thursday of
the expiry month.
• Futures contracts have a maximum of 3-month
trading cycle - the near month (one), the next
month (two) and the far month (three).
• MTM = Mark to Market
 Buy Reliance @ 1000 Target 1200
Stop loss 900
 Equity Market
• Ajay Account Balance 100000
• 1st Jan Ajay Buy 100 Share of Reliance @
1000
• 19 Jan reliance price cross 1200 so Ajay
sold 100 Share @ 1200
• Profit = 100 X 200 = 20000
• Profit In % = 20 %
 Derivative Market
• Sanjay Account Balance is 100000
• Reliance lot size 500
• Contact Value of 1st Jan 500 X 1000 = 5
Lac
• Margin Required 20 %
• Margin Required for 1 lot is 1 Lac
1st Jan Sanjay Buy 1 lot of reliance @ 1000
1st Jan Reliance price close @ 980
MTM = 500 X 20 = (10000)
2nd Jan Reliance Price close @ 970
MTM = 500 X 10 (5000)
3rd Jan Reliance price close @ 1020
MTM = 500 X 50 = 25000
4th Jan Reliance price close @ 1000
MTM = 500 X 20 = (10000)
• 19 Jan Reliance price cross 1200 so
Sanjay sold 1 Lot of Reliance @ 1200
• Profit = 500 X 200 = 100000
• Profit in % = 100%
• 1st Jan Close 980 = (10000)
• 2nd Jan Close 970 = (5000)
• 3rd Jan Close 1020 = 25000
• 4th Jan Close 1000 = (10000)
• 5th Jan Close 1050 = 25000
• 8th Jan Close 1080 = 15000
• 9th Jan Close 1070 = (5000)
• 10th Jan Close 1100 = 15000
• 11 Jan Close 1080 = (10000)
• 12th Jan Close 1120 = 20000
• 15 Jan Close 1100 = (10000)
• 16 Jan Close 1150 = 25000
• 17 Jan Close 1180 = 15000
• 18 Jan Close 1170 = (5000)
• 19 Jan Reliance Sold @ 1200 = 15000
• After Reliance Lot sell Total Profit is 100000
mean 100%
• Account Double in 19 Day
NSE Margin File
MCX Margin File
MCX Margin File
NCDEX Margin File
 NCDEX Margin File

• Expiry date of the contract: 20th

day of the delivery month.
 Currency Margin File

expiry date for such contracts is two

working days before the Last Trading Day.