- Nifty – The number used is the collective price movement of many stocks in National stock Exchange. It actually represents the emotions of millions of people operating in those stocks.
- City Union Bank – It is a small bank stock from south India.
- Electrotherm (I) - It is an Engineering Company.
Thursday, October 28, 2010
SEE THE PICTURE AND TELL THE STORY
This is an exercise you might have learnt in kindergarten. I am introducing the same concept for a different output. Charts are Graphical representation of price movement of anything over a period of time. The trend depicted by these charts is governed by the forces of demand and supply. ‘History Repeats’ is a dictum that is operative in the markets also. Markets include all kinds, such as Stock, Commodity, Crude, Metals, and Foreign exchange etc.
Observe the three charts carefully and try to predict which way the price movement is likely in the forthcoming weeks. At this point of time it is purely a geuss work. Let me see how many of you are good at this kind of prediction based on the picture. The representative charts are from Indian Stock Market.
About the charts:
1.NIFTY - WEEKLY
2. CITY UNION BANK - WEEKLY
3. ELECTROTHERM (I) -WEEKLY
YOU WILL LEARN MORE ABOUT CHARTS LATER.