Both FII and DII are major players in the market. Broad market trends can be traced on the basis of their inflows and outflows.
Share market tips: In the olden times, most of the middle class people used to visit banks to invest their money in fixed deposits or recurring deposits as they were considered as a reliable source of investment. Since the rate of inflation was low along with financial knowledge, such investments met the needs of the people at that time.
However, recent times have seen an increase in both the level of financial knowledge as well as the inflation rate of the economies, thus, most of the people have switched to investing in non-classical sectors.
To become a successful investor or to take a new step in the stock market, it is important to analyze a few factors before the market opens. If the trading strategies are decoded properly and the investment rules are followed, the market can deliver a return that can easily beat FDs, RDs and other traditional forms of investment.
According to Palka A Chopra, Senior Vice President, Master Capital Services, most people experiment by trying their hands in the stock market. But without proper knowledge people have to suffer and leave the place. Hence, it is important to closely study the trends and movements to stay invested for a long time to get good returns.
“Since the stock market is a constantly changing market and minor events can bring about significant changes in the stock market, it is important for an investor to always stay on top of all trends and developments and remain a successful investor,” Chopra said. said.
Things to see before the market opens:
Is the market trading or trending? It should be known whether the market is in a strong or trending mode. The trend can be up or down. This decision is very important because many trading strategies are based on it.
global market: One must analyze how the global markets are behaving before the market opens as it can provide some important clues as to how the market may behave during the trading day. One can also analyze ADRs and indicate which particular areas may underperform or be underperforming.
FII and DII data: Both FII and DII are major players in the market. Broad market trends can be traced on the basis of their inflows and outflows.
52-week high and low: These numbers are important as a stock that is fundamentally very strong can be bought for an intermediate to medium low near the 52-week low, while a breakout above the 52-week high can give a trader a breakout. Will help to trade in that particular area as the next step. Rally can happen in those sectors/stocks.
Security-wise Delivery Status: This is an important parameter to consider before trading as there is often a strong correlation with the delivery percentage and the stock price. For example: There may be many stocks that will show an increase in the price along with an increase in the delivery percentage. This can indicate a lot of interest in the stock which can be good for the stock price in the near term.
Bulk and Block Deals: Day traders can look at the data for bulk and block deals. Wholesale deals are happening in a stock on a continuous basis and if it is accompanied by high volume then it may indicate a trend in the stock.
National and International News: There is a close relationship between news and the stock market. A good source of information about the latest happenings and announcements is to regularly read news both national and global. Specific news related to factors affecting the market can be found on online and offline news portals.
government policies: Government policies govern the way a country and its economy function. Any amendment in the policy or introduction of a new government policy can bring positive or negative change in the performance of a business. If the industry in which the business operates favors the new change, it can increase business operations and profits. However, if the industry is negatively affected, the result could go in the opposite direction. Therefore, one must keep up with all the new government policies and expected changes. One can consult their broker to understand what a particular policy may mean for their investments.
Read also: Sensex’s Journey: From 1,000 to 60,000 in 31 Years
.