Remus Pharmaceuticals participates in the marketing and distributing of finished formulations of pharmaceutical drugs. Its business line can be classified into three major categories.

• API marketing and distribution
• Finished pharmaceutical drugs: marketing and distribution
• Technical consultancy to prepare reports on pharmaceutical dossiers

Remus Pharma distributes generic, regional, and multinational distributors to hospitals and clinics through a responsive distribution channel. It caters to clients spread across twenty countries.

As on January 31, 2023, Remus Pharma had a product portfolio of 429 products that it sells under different brand names in different countries.

Remus Pharmaceuticals Limited IPO Details

The IPO contains only fresh issues worth Rs. 47.69. The book-building IPO’s price band is fixed at Rs. 1150-1229 per share. The bidding window will open on May 17, 2023, for retail investors.

IPO Dates

Important dates with respect to IPO allotment and listing

Remus Pharmaceuticals IPO Subscription Details

Remus Pharmaceuticals IPO Subscription Status Live

Remus Pharmaceuticals Limited IPO Objective

The net proceeds from the fresh issues will be utilized in the areas below.

• Funding investment for an acquisition

• General corporate purposes and working capital requirements

• To meet the IPO expenses

Should you invest in Remus Pharmaceuticals Limited?

Here are a few key reasons to consider before investing in the IPO:

• The company offers a diversified product portfolio to its customers spread across 20 countries.

• Remus Pharma has a diversified business operation and revenue base.

• It is engaged with contract manufacturers that are WHO and GMP-compliant.

Competitive Peers

The other players in the segment recognized by the company are Trident Lifeline, Vaishali Pharma, and Chandra Bhagat Pharma Ltd.

Noteworthy Highlights of Remus Pharmaceuticals Limited

• The revenue from export has increased from Rs. 1,191.90 lakhs in FY 2020 to Rs. 2,316.23 lakhs in FY 2022.

IPO Financials

Know before investing

Strengths

• It operates on a scalable business model.

• The promoters are experienced in the pharmaceutical industry.

• The company offers a wide product base of 429 products, with an additional 134 products in the registration process in 16 countries.

Risks

• Dependency on suppliers and manufacturers can impact the company’s future business operations and financial performance.

• The company lacks brand awareness.

• The absence of steady cash flow and the non-availability of funds can impact the future performance and profitability of the business.

Please Click Here to Apply For Remus Pharmaceuticals Limited IPO

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NRI Trading Account

The guidelines of the Reserve Bank of India (RBI) mandate NRIs to open a trading account (NRE/NRO) with a designated institution (Broker) authorized by the SEBI. To avail benefits of investment, NRI must also open a PIS and NON-PIS account with the designated Institution (Banks) with RBI.

Types of Accounts

NRE/NRO Trading Account:

This account allows buying and selling of equities through the Indian stock exchanges. It is available only for equity segment trading in the Indian share market. Investors can’t use a PIS account to invest in other segments.

It can be further classified as NRE and NRO PIS accounts. NRE PIS account allows transactions where the funds can be repatriated to foreign countries. On the other hand, the NRO PIS account does not allow fund repatriation for executed transactions.

NRE/NRO NON-PIS Account:

To invest in Initial Public Offerings (IPO) or mutual funds, investors must open a non-PIS account. This is, again, classified as an NRE and NRO Non-PIS account. Transactions made through the NRE account can be repatriated, while NRO doesn’t allow repatriation. Moreover, the NRO Non-PIS accounts allow trading in futures and options.

Angel One doesn’t offer non-PIS accounts for NRE and NRO investors.

PIS Account:

A PIS account (Portfolio Investment Scheme) is mandatory for NRI investors to settle shares/funds for the investment done through a Trading account. Our customers can open NRE/NRO PIS accounts with designated banks associated with Angel One. Users must remember that they can open only one PIS account.

Angel One has partnered with several leading Indian banks to offer NRE/NRO PIS account openings. All transactions in the PIS account are reported to the RBI.

Why are two different accounts required for an NRI?

To create a seamless process, you must link your trading NRO trading account to your NRO bank account(non-repatriable account). One must complete the process to manage their funds earned in India. NRO account doesn’t allow the transfer of money overseas; only the principal investment amount is repatriable after you pay taxes.

According to RBI rules, overseas transfer of up to 1 million USD is permitted in one financial year. After TDS is deducted, the interest earned can be transferred to a foreign account.

So in all, adhering to RBI rules and regulations, NRIs are supposed to open two separate accounts for non-repatriable and repatriable investments.

Several banks and brokerage firms offer trading account facilities. With the diversity of options available, investors need the knowledge to make informed choices.

• For easy account opening, choose an intermediary depository with the SEBI.

• Brokers will charge certain account opening and brokerage charges, which you must consider. Choose the option that will cost you the least amount.

• The interface between the bank and Demat accounts should be seamless. The depository participant is expected to provide analytics related to valuation, diversification, profitability, and a direct call of action to the traders.

• The broker or depository you finalize must also have certain plus points, offers, or extra services that set them apart from the competition.

NRI Trading Account Opening

To avail of the NRI Trading account, users need to fill out an application form to the designated branch of an authorized dealer. Moreover, clients must provide all details of any transactions in the primary markets. You should submit the PIS Demat account details along with the application form.

Trade Settlement

With the knowledge of a trading account, NRIs must also understand how settlements for their investment purchases/sales are made. Payments or receipts for investments made on a repatriation basis are completed through an outward or inward remittance through regular bank channels or funds maintained in the NRE/NRO PIS account. If buying/selling happens on a non-repatriation basis, the payment/receipt can be made through the NRO savings account.

Points to remember before opening a PIS account

• NRI investors can only participate in delivery transactions.

• Intraday and Buy Today, Sell Tomorrow (BTST) trades are not an option if you are an NRI investor. 

• Funds should be available to conduct trades in the customer’s NRE/NRO PIS account linked to Thrilling Securities.  

• RBI restricts NRIs from selling shares purchased on the Indian stock exchanges through private arrangements or gifting.

You can research and open an NRO account based on your unique needs and preferences. You may also choose an NRE account, which offers advantages such as repatriation benefits for both interest and principal and tax exemption on interest earned. Once you have accounts ready, you can invest in nearly all sectors, excluding companies in chit funds, print media, plantation, real estate (besides real estate development), transferable development rights, and agriculture. Capital gains are taxable at a 15.00% + applicable cess for shares held for less than a year. However, the capital gain tax is exempted if the shares are held for over a year. Generally, the broker will withhold income tax while remitting bank accounts.

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Taxes are a headache for all those who file them, especially people who have to calculate taxes for high-volume-low-value financial flows eg: intraday traders.

Taxes on intraday trading are determined based on the classification of the trading activity as business income or capital gains. Intraday traders need to understand the intraday trading taxation implications and comply with tax laws to avoid penalties and legal issues.

Types of business income from Intraday Trading

Business income from intraday trading can be classified into speculative business income and non-speculative business income. While the tax liability on both these incomes is effectively the same, the separation between speculative and non-speculative determines your ability to offset your losses in the market. But let’s first define these two incomes.

1) Speculative income: 

Profits from intraday trading of equity shares are classified as speculative income. It is so because those investing in a stock for less than a day are presumably not investing in the company but are only keen on speculating its price volatility to turn a profit. 

2) Non-speculative income:

On the other hand, profits made from intraday or overnight trading of Futures and Options are considered non-speculative income by definition. It is so because certain F&O contracts still have a delivery clause whereby the underlying shares/commodities exchange hands between traders on the expiry of contracts. At the same time, all income from even longer F&O trades shall be considered non-speculative income if it forms a substantial part of your total income or it’s a business activity for you.

Tax Implications of Intraday Trading

Traders should be aware of income tax on intraday trading. The profits from intraday trading are treated as either business income or capital gains, depending on the frequency and nature of the trades. Suppose the trading activity is considered a business. In that case, the profits are taxed as per the slab rates applicable to businesses, and the trader can claim deductions for expenses incurred in carrying out the business. However, if the trading activity is considered capital gains, the profits are taxed at a lower rate, and the trader can claim exemptions and deductions for long-term capital gains.

Intraday traders must maintain detailed records of their trades, including each transaction’s date, time, and price, to accurately calculate their tax liabilities. Failure to comply with tax laws can result in penalties and legal issues.

How to Calculate Taxes on Intraday Trading Profits?

The income taxes on intraday trading profits are governed by the Income Tax Act 1961. Here’s how to calculate taxes on intraday trading profits:

● Determine your net profit or loss: Your profit or loss from intraday trading is calculated by subtracting the total expenses incurred during the trading, including brokerage fees and other transaction costs, from the total income generated.

● Classify your income: The income earned from intraday trading is classified as business income and is taxable.

● Calculate taxable income: After determining the net profit or loss, calculate the taxable income. It is calculated by adding the net intraday profit to other income you earn during the financial year.

● Apply the tax rate: The tax rate applied to your taxable income will depend on your income bracket. 

● Pay advance tax: If your total tax on intraday trading liability for the financial year exceeds Rs. 10,000, you must pay advance tax in installments during the financial year.

Whether Tax Audit Is Applicable For Intraday Trading?

1) If your Intraday Trading Turnover is up to ₹2 Crore

• Tax Audit shall not be applicable if you have made profits of at least 6% of Trading Turnover.
• If you have incurred a loss or your profit is less than 6% of Trading Turnover: Tax Audit applies if your total income is more than ₹2.5 lakhs (basic exemption limit). 

2) If your Intraday Trading Turnover is more than ₹2 Cr and up to ₹10 Cr

• If you have made profits of at least 6% of Trading Turnover:
  • Tax audit is applicable if you do not choose the Presumptive Taxation Scheme under Section 44AD. 
  • A tax audit is not applicable if you opt for Presumptive Taxation Scheme under Sec 44AD.
• Tax audit is applicable if you have incurred a loss or your profit is less than 6% of the Trading Turnover.

3) Trading Turnover is more than ₹10 Cr

Irrespective of the profit or loss, a tax audit is applicable if you have a turnover of more than ₹10 crores (Only if over 95% of transactions are digital. Trading is 100% digital).

How are intraday losses treated?

• If you have suffered losses in intraday trading, you can carry forward the losses for the next four financial years. It will help you reduce your taxable income in future years. However, you must file the income tax return before the due date to enjoy carrying forward losses. Intraday Trading Tax Audit Under section 44AB of the Income Tax Act, 1961, intraday trading tax audit for traders is mandatory if:– Presumptive business income turnover (profit/loss) is more than Rs. 2 crores in a financial year.

• Normal business income turnover ( profit/loss) exceeds Rs. 1 crore in a financial year

• Note that turnover means the total of absolute profits minus losses made on daily transactions when it comes to intraday trading. Who performs tax audits for intraday trading? Suppose an intraday trader is subject to a tax audit for intraday trading. In that case, the trader needs to hire the services of a professional chartered accountant to carry out a range of services, including:– Preparation of financial statements such as P/L and balance sheets.

– Auditing of the book of accounts

– Preparing and filing the tax audit report on Form 3CD

– Preparing, filing, and submitting ITR

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The company manufactures, exports, supplies discharge, and collects electrodes and Electrostatic Precipitator (ESP) internal parts and spares.

Auto Impex & Chemicals, an ISO 9001:2015 certified company, specializes in manufacturing collecting electrodes, discharge electrode plate steel structures, and electrostatic precipitator (EP) components. The company manufactures a filtration device that matches American and European standards to remove fine dust particles from flowing gas.

Thermax, Larsen & Toubro, KC Cottrell India Private Ltd., Isgec Heavy Engineering, Hariaksh Industries Private Ltd., etc., are some of the renowned OEM clients of Auto Impex & Chemicals.

Currently, the single manufacturing facility of Auro Impex & Chemicals is located in the Hooghly district of West Bengal.

Auro Impex & Chemicals Limited IPO Details

Auto Impex & Chemical IPO worth Rs. 27.07 crores will open on May 11, 2023. The offer combines fresh issues (29.2 lacks) and an offer for sale of 5.50 lakh from the selling promoter shareholder.

IPO Dates

Important dates with respect to IPO allotment and listing

Auro Impex & Chemicals Limited IPO Objective:

• To meet working capital requirements

• General corporate purpose

• To meet issue expenses

Should you invest in Auro Impex & Chemicals Limited?

Here are a few significant reasons to consider before investing in the IPO:

• It has a manufacturing unit built according to international standards and equipped with modern machines. 

• The company sells its products through renowned OEMs and service providers and has developed long-running relationships with them.

• With rising awareness and government initiatives to reduce air pollution, the global electrostatic precipitator market is expected to grow at a 4% CAGR from 2022-2030. 

Noteworthy Highlights of Auro Impex & Chemicals Limited

• The company’s revenue from operations and profit have grown steadily in the last three fiscal years. 

• The manufacturing facility had a total installed capacity of 17,500 MT as of FY23.

IPO Financials

Know before investing

Strengths

• The company has built long-standing relationships with its customers engaged in thermal power projects, development & construction projects, etc.

• Experienced promoters and a management team manage it.

• The company has many decades of experience in the same business line.

Risks

• Investors must note that after two years of average performance, there was a sudden hike in the company’s profit in the last fiscal year. It might raise questions regarding sustainability going forward.

• It depends on a few customers; losing a customer will impact the company’s future profitability.

• Investors should move with caution as the offer lacks transparency.

Please Click Here To Apply For Auro Impex & Chemicals IPO

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Nexus Select REIT is one of India’s leading consumption center platform providers and owners of high-quality infrastructure assets. The REIT’s portfolio comprises 17 Grade-A urban consumption centers in 14 leading cities with a total leasable area of 9.2 million square feet.

Nexus Select Trust primarily deals with consumption centers. It holds India’s largest consumption centers’ portfolio, with an average of 96.2% committed occupancy as of December 31, 2022. Their tenant base comprised 1,044 domestic and 2,893 international brand stores during the same period.

With investments across industries, Nexus Select is backed by Blackstone, the world’s largest alternative asset manager.

Nexus Select Trust REIT IPO Details

Nexus Select Trust REIT is India’s first REIT to launch an initial public offering. The total issue size of Rs. 3,200 crore consists of Rs. 1,400 crore and an offer for sale of Rs. 1,800 crore.

Nexus Select Trust REIT IPO is a book-building type IPO that will open on both BSE and NSE. The Nexus Select Trust REIT IPO date is fixed for May 9–11, 2023, for investors to submit their bid applications.

The IPO will list on the bourses on May 19, 2023.

Nexus Select Trust REIT IPO Dates

Important dates with respect to IPO allotment and listing

Nexus Select Trust REIT IPO Subscription Details

Nexus Select Trust REIT IPO Subscription Status Live

Nexus Select Trust REIT IPO Objective

The net proceeds from the fresh issues will be utilized for

• Partial or full repayment of certain market borrowings of the Asset SPVs and the investment entities

• Acquisition of stakes and dissolving certain debt securities for the asset SPVs

• General corporate purposes

Should you invest in Nexus Select Trust REIT?

Here are the top reasons to consider before investing in the IPO:

• Its commercial spaces are in prime cities like Delhi, Bengaluru, Pune, Hyderabad, Navi Mumbai, etc.

• India’s retail commerce is expected to grow steadily (brick-and-mortar and online), supported by rapid urbanization and the rising purchasing power of the growing middle class.

• It offers a mixed portfolio of assets, including two complimentary hotels and three office assets.

Noteworthy Highlights of Nexus Select Trust REIT

• The company enjoyed 11% growth (CAGR) between FY18 and FY20 in tenant sales in its properties, where marginal rent across its portfolio grew at a 7.5% CAGR from CY16 to CY19.

• It offers a well-diversified portfolio of assets, with no single asset or tenant contributing more than 18.3% or 2.8% of the total gross rentals, respectively.

Nexus Select Trust REIT Company Financials

Know before investing

Strengths

• It holds the largest portfolio of consumption centers, with an average occupancy of 96.2%.

• A healthy mix of tenants supports its business.

• A highly stabilized portfolio of assets positioned for solid organic growth.

Risks

• Interested investors should understand the business patterns of REITs before investing.

• The company may obtain external debt post-IPO to repay certain indebtedness.

• Its debt situation can significantly impact the company’s cash flow.

Please Click Here To Apply For Nexus Select Trust REIT IPO

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The sum invested by you, including the collateral provided, is referred to as the margin, and this practice generates a degree of trading power referred to as leverage. Margin trading can generate leverage that can amplify both profits and losses.

While they may seem fairly alike at first, there are several ways to differentiate between them when comparing margin vs. leverage.

Margin

Margin trading is using assets owned by an individual as collateral for soliciting a loan from a broker. The loan received is used to carry out trades.

Margins can generally be defined as the difference between the total value of securities in an individual’s margin account and the loan amount solicited from a broker to carry out the trade.

Buying on margin necessitates opening a margin account with a certain sum as an initial investment/ This sum acts as the collateral and is referred to as the minimum margin.

The sum you invest in the trade and the amount of money to be kept in the margin account as collateral while trading is referred to as the initial and maintenance margins, respectively.

If the sum in the account falls below this value, the broker will force you to deposit more money, pay back the loan using the remaining funds, or liquidate your investment in a margin call practice.

Leverage 

While Margin enables an individual to open an equity account or position, leverage, on the other hand, helps you to increase your purchasing power. It involves using different tactics and techniques ultimately focused on fetching better returns.

Say you want to buy the shares of ABC Ltd, currently trading at around Rs 200. Instead of fully paying the amount, one can simply use the leverage. Then the individual investor will pay only part of the amount, say Rs 50. The broker will be paying the rest. Thus, an increase in price by Rs 100 will bring a gain of Rs 250. On the other hand, if you had paid the entire amount, the gain would have been Rs 50 only.

Note that the fall in price will also replicate similar numbers in your loss column. And thus, higher leverage naturally brings in higher risk.

Margin vs Leverage 

• Concerning their varying definitions in different contexts, such as equity or forex trading, the main difference between margin trading and leverage is that leverage is most often used to indicate the degree of buying power afforded by taking on debt.
• Another important difference between margin and leverage is that while both practices involve borrowing, margin trading involves using the collateral present in your margin account to borrow money from a broker, which has to be paid back with interest.

The borrowed money, in this case, acts as leverage in allowing you to carry out larger trades.

Both concepts are interrelated. However, it is vital to note that, when comparing margin vs. leverage, margin accounts are not the only means of generating leverage, as this can be done by employing strategies that do not involve margin accounts.

Finally, when identifying the difference between margin and leverage, it is obvious that conservative leverage strategies over long periods tend to reduce risks better. Short-term investments on margins yield good results in markets with high liquidity.

SEBI rules on Margin and leverage

The following are some of the rules that SEBI has laid forward in the recent past concerning trading in Margin and leverage:

• Initially, the traders were required to maintain the directed margins at the end of the day. But SEBI laid new rules wherein four random snapshots will be taken to assess if the Margin was maintained. Failure to hold a minimum Margin on intraday positions will attract a penalty. 
• The maximum leverage a broker can offer is restricted as follows, 

Maximum leverage = VAR + ELM (min 20% ) or SPAN + Exposure

where VAR – Value at Risk and ELM – Extreme loss Margin

• If you are looking for margin funding, you will have to pay about 30% upfront.

Conclusion:

Margin accounts are commonly used to generate leverage by experienced traders in the securities and forex market. However, novice traders should be warned against leveraging strategies without a concrete understanding of how markets move. They risk losses higher than those they would have encountered if their investments had not been leveraged. The two concepts are closely interrelated, and while it may be initially difficult for some to spot the difference between margin and leverage, their manner of application, the context in which they are applied as well as the restrictions involved in utilizing them are the main points of differentiation when comparing margin vs. leverage.

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What is a Pennant Pattern?

In the trading world, a pennant is a continuation pattern formed when security undergoes a large-scale movement followed by a consolidation period with converging lines. The first phase is known as a flagpole in technical analysis. However, what separates a pennant from a flagpole is the period of consolidation that follows after the large movement. In a pennant, one can observe, in the same direction as the first significant movement, a breakout movement that represents the second half of the flagpole. It completes the pennant chart pattern.

Key Characteristics

When trying to identify a pennant pattern in trading, you will see the following three movements.

Phase 1 – First Flagpole

This is always the start of a pennant pattern. This also differentiates a pennant pattern from other technical indicators, such as a symmetrical triangle. This upward rise denotes the influx of volume and rises in stock price, which precedes the pennant.

Phase 2 – Pennant Pattern

Coming to the pennant itself, one should observe a triangular shape after the period of consolidation is over. Two converging trend lines should come together to form a triangle, which is the pennant.

Phase 3 – Breakout levels

In the case of the pennant, there will be not one but two separate breakouts. One will be at the end of the flagpole itself, and the other will be after the consolidation period preceding the flagpole. Breakouts could be upwards or downward but will continue the trend in one direction.

How can I spot a pennant formation?

In terms of structure, pennants are similar to flags. Both have converged lines that last between one to three weeks in their consolidation period. However, looking at the trade volume to spot a pennant pattern is crucial. During the initial move, the trade will see a lot of influx of books. This will follow with a period of weakening volume, characteristic of the pennant formation. Finally, there will be another significant increase in volume, signifying a breakout.

As shown in the image above, the flagpole shows the previous trend as higher. Then pennant formation is observed when the volume reduces as there is a period of consolidation. During this period, traders are anticipating a breakout period. That breakout period is when the upper trendline forms a symmetrical triangle.

How to trade with pennant pattern technical analysis?

Pennant trading is about spotting the formation and correctly anticipating the breakout point. Following the breakout from a pennant, most traders seek to enter short or long positions. For instance, a pennant trader might observe a bullish pennant forming. Accordingly, she might limit the buying order above the pennant’s upper trendline. Once the security breaks out of this upper trendline, the trader might look for an above-average volume that confirms the pennant pattern. Once an influx of volume is seen, pennant formation is confirmed, and she can hold her position until the security reaches her target price.

Usually, for pennants, the target price is often established by applying the flagpole’s height to the point at which the share’s price exceeds -breaks out of the pennant. For example, suppose that the stock price rises from ₹50 to ₹100 due to a sharp rally. Then the stock price consolidates to ₹85 and finally breaks out of the pennant at ₹90. A trader who wishes to use pennant pattern technical analysis in their trade will look for a target price of ₹50 plus ₹90 equaling ₹140. Accordingly, traders set the stop loss at the pennant chart pattern’s lowest point. A breakdown from these low levels would invalidate the pattern and could mark the start of a long-term reversal in the price.

Traders also often use the pennant pattern technical analysis with other chart patterns. It is difficult to confirm whether what one sees is a pennant, but other indicators can help validate one’s assessment. For example, using a relative strength index or RSI allows one to wait for these levels to moderate in the consolidation phase. It leads to a potentially higher move. In another scenario, the price consolidation may occur close to the trendline’s resistance levels. From here, a breakout could create a whole new support level.

Time Frame for a Pennant Pattern

A pennant pattern is a short-term pattern that generally forms over days or weeks. It is not uncommon for traders to trade on pennant patterns that appear in longer time frames.

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Intraday trading involves buying and selling stocks within the same trading day. Here stores are purchased not to invest but to earn profits by harnessing the movement of stock indices. Thus, the fluctuations in the prices of the stocks are harnessed to earn profits from trading stocks.

An online trading account is used for intraday trading. While intraday trading, you need to specify that the orders are specific to intraday trading. As the orders are squared off before the end of the trading day, it is also called Intraday Trading.

Intraday Trading Tips

Intraday trading is riskier than investing in the regular stock market. It is important for beginners to understand the basics of such trading to avoid losses. Individuals are advised to invest only the amount they can afford to lose without facing financial difficulties. A few intraday trading tips will help you learn the art of trading. Know now more about intraday trading tips.

Information Offered by Intraday Trading Indicators

• The direction of the trend to determine the movement
• The lack of or existing momentum within the investment market
• Profit potential due to the volatility
• Determine the popularity through volume measurements

These are the vital pointers shared by trading indicators. These essential but beneficial pointers help assess the market conditions and allow traders to make better decisions concerning trade positions.

Useful Intraday Trading Indicators

Moving Averages:

Traders often hear about daily moving averages (DMA), the most common and widely used indicator. The moving average is a line on the stock chart that connects the average closing rates over a specific period. The longer the period, the more reliable the moving average. This indicator will help you comprehend the underlying movement of the price, as prices do not move only in one direction. Stock prices are volatile, and the moving average indicator smoothens the volatility to provide an understanding of the underlying trend of the price movement.

Bollinger Bands:

This intraday trading indicator is one step ahead of the moving average. This band comprises three lines—the moving average, an upper limit, and a lower one. All these are representative of the stock’s standard deviation, which is nothing but the amount by which the price increases or decreases from its average. It provides traders with an understanding of the stock’s trading range.

Momentum Oscillators:

Stock prices move up and down. Short-period cycles are unrelated to bullish or bearish market trends. In such cases, it is easy for day traders to miss out on such changes when the momentum oscillator is beneficial. This indicator is depicted within a range of 0 to 100 and is advantageous when the price has achieved a new high or low, and one wants to determine whether it will further rise or fall. In other words, the momentum oscillator helps to understand when the market sentiments are undergoing modifications.

Relative Strength Index (RSI):

The RSI is one of the useful intraday trading tips to compare the share price’s gains and losses. This information is then formulated in an index form, which further helps narrow down the RSI score between 0 and 100. This index increases with price rises and vice versa. Once the RSI increases or decreases to a specified limit, you can modify your trading strategy.

Decoding the Intraday Trading Indicators

Moving Averages:

If short-term averages exceed long-term averages, it indicates a bullish market trend. Traders may take a buy call with specific strategies like stop-loss at the long-term moving average or retracement support and vice versa. This intraday tip can help traders earn decent profits through intraday trading.

Bollinger Bands:

If the stock is trading at a price below the Bollinger Band lower line, there is potential for the price to increase in the future. Traders can choose to take a buy position. On the other hand, if the current stock price is over the upper line, traders can sell the share.

Momentum Oscillators:

If the share price has reached a historical high, and the level of the oscillator is not the same as the price, it is indicative of slowly decreasing demand. This also indicates the possibility of a stock price fall. And the opposite is true for stock price rise.

RSI:

Most analysts will recommend traders sell the stock when the RSI touches 70 and a buy recommendation when it falls to 30. However, all stocks may not adhere to this pattern, so it is important to analyze the volatility and RSI history before deciding.

Using intraday trading indicators help in averting risk and placing appropriate trades based on technical analysis and market sentiments. Angel One offers detailed charts and stock analysis reports that comprise these trading indicators. These tools help in planning an effective trading strategy while minimizing risks.

How to make profit in intraday trading

Intraday traders always face inherent risks that exist in the stock markets. Price volatility and daily volume are important in the stocks picked for daily trading. To ensure the right risk management, traders must not risk over two percent of their total trading capital on a single trade. So here are a few tips to make a profit in intraday trading.

Advantages of Intraday Trading

There are many pros of day trading in the stock market. Here are some of the key advantages.

1. Instant Earnings

Unlike long-term investments, you can get earnings from day trading almost instantly. Once you exit your trade, depending on your strategy and performance, the profit or loss will be directly reflected in your trading account. You can either reinvest the profits back into your trading capital pool or withdraw the same by transferring the funds to your bank account.

2. No Overnight Risk

With day trading, as you would not hold your stocks overnight in the market, you can avoid the risk of overnight fluctuations. Many times, the stock price changes between the close and opening of the market due to news and other sources. This fluctuation can affect the stock price.

3. Make Profits in Bear Markets

A key advantage of day trading is that you can also profit in a bear market. Instead of buying a particular stock, you can short-sell and buy them later to make profits. You can thereby make profits in both rising as well and falling markets. This advantage is usually not available for investment options.

Disadvantages of Day Trading

There are a few cons of day trading too. Here are some of the disadvantages that you should be aware of. Make sure to keep these disadvantages in mind so that you can steer away from them to be a profitable trader.

• Risk During Volatile Markets

• Requires Consistency

• Risk of Losing Capital

Intraday Time Analysis

Regarding intraday trading, daily charts are the most commonly used charts representing the price movements on a one-day interval. These charts are a popular intraday trading technique and help illustrate the movement of the prices between the opening bell and the closing of the daily trading session. There are several methods in which intraday charts can be used. Know about some of the most commonly used charts.

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What Is the Consumer Price Index (CPI)?

The CPI index is a metric to quantify inflation. It is calculated by tracking the change in the prices of essential products and services households consume over time. The consumer price index captures the inflation in a fixed set of items like transportation, food, medical care, education, etc., at the retail level.

The Consumer Price Index (CPI) measures the aggregate price level in an economy. The CPI consists of a bundle of commonly purchased goods and services.

The market basket used to compute the Consumer Price Index is representative of the consumption expenditure within the economy. It is the weighted average of the prices of goods and services. Why is it important? Because it affects the life of the people and their purchasing power in the economy. CPI is a widely used statistical measure to identify periods of inflation or deflation.

CPI serves the same purpose at the retail level as WPI (wholesale price index) does at the factory gate. Experts study both to understand how product price changes from the time it is manufactured and by the time it reaches the end customer.

Different countries use different basket of goods to calculate CPI and different base periods, like in India, CPI is calculated against 2012. The base period is the year zero from which the CPI calculation starts. It has given a value of 100. Goods prices are then calculated against the base period.

How is CPI calculated?

Just like the Wholesale Price Index, the CPI too is calculated concerning a base year. CPI can be easily calculated by dividing the cost of the basket of items in the current year by the price in the base year and multiplying the result by 100. The annual percentage change in CPI is used to assess inflation.

If you are a math geek, here is the formula to calculate CPI.
CPI= Cost of Market Basket in Given Year/ Cost of Market Basket in Base Year​×100

Calculating CPI is a rigorous task.
In India, the agency estimates the price of 697 goods to determine CPI.

How Is CPI Measured In India?

India is a diverse country, and due to supply-side disparities, a product’s price may rise or decline in a rural area than in an urban area. For instance, let’s say there is a shortage of onions in the country. The concept of demand-supply dictates the price of onions will rise by certain percentage points.

The rise in price due to low production will be the same across the country. But some far-flung rural areas may see a higher increase in price due to the inefficiency of supply chains, which get aggravated when quantities decline.

The change in the price of the basket of goods and services is tracked at the rural, urban, and pan-India levels to get a balanced idea. Additionally, different products and services are assigned different weights in the basket. A product can also be important based on whether we measure rural or urban CPI. For example, food and beverages have 54.18 percent weight in rural CPI but carry only 36.29 percent weight at the urban level.

It is a highly dynamic metric, and it is quite a task to calculate the consumer price index. Different CPI is computed on different products’ clusters for convenience and better clarity over price movements.

Various series of the CPI are released. These are CPI for Industrial Workers (IW), CPI for Agricultural Laborer’s (AL), CPI for Rural Laborer’s (RL), CPI (Urban), and CPI (Rural). The Labor Bureau compiles CPI (IW), CPI (AL), and CPI (RL), while the CPI (Urban) and CPI (Rural), which have wider population coverage, are compiled by the CSO. These bodies are responsible for the compilation of data, but the collection of data requires extensive work. Field investigators fan to every corner of the country to collect data on price fluctuation from rural and urban areas.

The reason for calculating separate CPIs is to get clarity on the impact of inflation on different income sections. In a country like India with wide income disparity, it gives policymakers crucial insight to measure monetary policies’ effects on common people’s lives.

What is the importance of the CPI index?

Inflation can have a wide-ranging impact on people’s livelihood in a developing country like India. CPI is a measure of retail inflation, which gives a clear idea of the price rise for the common citizen.

It is a crucial metric to ascertain the cost of living in the country and provides vital pointers to policymakers. The Reserve Bank of India uses the CPI index as a major metric for formulating monetary policy. The Monetary Policy Committee has set itself a target of maintaining inflation within a 2 -6 percent band.

Conclusion 

CPI gives a better glimpse of changes in the consumer’s purchasing power. Recently, The Central Statistical Office (CSO) changed the methodology of calculating CPI to make it more inclusive and robust. They have also changed the base year from 2010 to 2012 and incorporated changes in calculating the series from the average method to the geometric mean, which will align it better with international practices.

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A Golden Cross is a basic technical indicator that occurs in the market when an asset’s short-term moving average (50-day) rises above a long-term moving average (200-day). It signals a bullish turn in sentiments. In other words, the shorter-term MA rises faster than the longer-term until it catches up with the latter. This movement shows the stocks are breaching the support levels of long-term MAs to make new highs. A moving average is the average of closing prices of shares over a given period.

Why does A Golden Cross Indicate Bullishness?

Experts maintain that if short-term MA prices breach the long-term moving averages and stabilize, the stock could gain 5-7 percent. In a golden cross chart, you will see the eventual bottoming out of stock prices before they start soaring upwards and steady above the long-term moving average.

This stabilizing effectively indicates investors are bullish about stock prices and expect prices to remain at similar levels or rise further. In a golden cross, the long-term moving average turns out to be the support level for the prices, and the golden cross remains as long as the prices trade above the long-term moving average. Positive sentiment about a particular stock increases investor interest and builds buying opportunities at those levels. As the two trend lines align and as long as short-term MA cruises above long-term MA, experts suggest the bullish sessions will likely last for some time. As the trading volume rises, the upward trend in stock prices gathers steam. But when the short-term moving average moves below the support level, it gives way to a new technical chart pattern called the death cross.

The purpose of moving averages is to indicate the bullish markets from the bearish ones. When markets are bullish, as indicated by a golden cross, traders look to buy with the slightest dips in prices, and when markets are bearish, like a death cross indicates, buyers sell when prices spike even a little bit. This way, the golden cross and death cross work as trading strategies since traders can simply follow the trends indicated by these two technical chart patterns.

Drawbacks Of Golden Cross

More often than not, golden crosses have rightly predicted significant bull markets, but not always. It is quite possible that a golden cross may not sustain, in which case, if you take a long position relying on the golden cross alone, you may be in for some setback in the short run. So, similar trends in other indicators and filters must reinforce a golden cross before taking a trading position.

Limitations of Using the Golden Cross

All indicators are “lagging,” and no indicator can predict the future. Many times, an observed golden cross produces a false signal. Despite its apparent predictive power in forecasting prior large bull markets, golden crosses also regularly fail to manifest. Therefore, a golden cross should always be confirmed with other signals and indicators before putting on a trade.

The key to using the golden cross correctly—with additional filters and indicators—is always using proper risk parameters and ratios. Remembering to always keep to a favorable risk-to-reward ratio and time your trade properly can lead to better results than following the cross blindly.

Conclusion:

To make a better decision following a golden cross, you can look at a stock in a current golden cross with a long downtrend before bottoming out and rising again. When a stock enters a golden cross after having seen multi-years of a bearish death cross, it can be a strong sign of trend reversal. Yet another option is to look for a double bottom; that is, the stock on both the moving averages breaches the same lows before moving into a golden cross. Once the golden cross is formed, wait for the prices to test the long-term moving average as support levels. Then you can know fairly well how strong the rally predicted by the golden cross will likely be.

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