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Share Marketing in Chennai – Understanding Demand and Supply, Analysis of Stocks

Share Marketing in Chennai – Understanding Demand and Supply, Analysis of Stocks

The performance of the stock market is a glimpse of the overall performance of the economy. It is imperative that an investor understands the overall implication of the demand and supply of stocks in the market.

The reason being overall demand and supply determines the overall price of stocks and securities. The demand for a stock is dependent on many factors like the decisions made by the management, the prevailing interest rates in the market on other securities and investment options, and overall results declared by corporates on a quarterly, half-yearly and annual basis. To understand the implication of demand and supply of stocks get yourself trained in share market training in Chennai at share market profile.

A stock market works on the simple philosophy of demand and supply. In a market when a stock shows a bullish trend more and more people want to buy a certain stock and the stock comes short in supply and the price of the stock tends to move up. A stock is in oversupply when more and more people are selling the stock and recovering their money from the market. A stock in such cases starts losing price and shows a bearish trend. To understand trends and make your own analysis enroll yourself for a share market training in Chennai at share market profile.

A stock market is dynamic and changes according to the changing scenario around them. Some of the factors which affect the rise and fall in the share market are the interest rates of other securities, the profits declared by the corporate houses, the overall scenario of the economy, international economic scenario, the flow of capital through international investors, the overall public sentiment of people investing in the stock market, growth or decline of certain industries or sectors of business. One of the most common ways to understand demand in a market is to study the daily average volume. Specifically, we need to look at those days of trading where the trading is higher than normal days or the days when the trading is lower than the normal days of trading. On these days if a sharp increase in the price of stocks is seen and the volume of trade moves above the average trading this shows an increase in the demand for stocks.  To build your understanding of the overall market scenario enroll yourself for share market training in Chennai at share market profile.

There are various charts made and read by the share market analysts to understand the demands of stocks in the share market.

P&F Chart

A P& F chart is made up of X and O columns. The X column represents the rising prices and the O column represents the falling prices of stock. With the P&F charts, important prices of stocks can be tracked and time is not a factor that is taken into consideration while charting the P&F chart. Before the computers were brought into use the P&F charts were stored by stock analysts to make decisions regarding stock investment.

Moving average (MA)

An average value of the stock is measured through technical indicators like the moving average indicator. It shows the movement of a stock value over a period of time like 15, 20, or 200 days. There are two ways of calculating the average

  1. EMA (Estimated Moving Average)
  2. SMA (Simple Moving Average)

The EMA is faster in reaction to change in recent price changes. It is vulnerable to wrong signals. SMA moves slowly and keeps you in trade for a long time. EMA gives earlier signals which can be premature signals as well.

Stochastic oscillator

The stochastic oscillator compares the recent closing prices of the stock for a period of time. The stochastic oscillator displays two lines %K and %D. %K displays the lowest value of the stock for a definite period of time. While %D displays the highest value of the stock for the same period of time. This oscillator is used for determining the demand and supply of stocks in a fast-moving market.

To understand the details of stock market investment come to share market profile for share market training in Chennai. 

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We train Market Profile and Order Flow concepts in Equities, Futures, Commodities, Forex, etc. We have 21 years of experience in markets with that we created Powerful trading strategies which gives Consistent Results.