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Fundamental-analysis

3 (bullish) ideas for $TRAC (BRC20)Narrative: CRYPTOCAP:BTC BTC and the BRC-20 tokens are taking a little breather, which is certainly good for the market in the medium term. I'm particularly bullish on LSE:TRAC , a project that sits at an MC of just under 100 million and for which I believe a 10x is within the realm of possibility. These 3 bullish ideas come to mind - accumulation at $4 and at $5 (green zones), TP from $7 (red). Of course, things can turn out completely differently. Do not forget that the crypto market in general and the new protocols on BTC such as Ordinals, Stamps, PIPE, etc. in particular are subject to huge volatility and any project can go to 0 at any time. HIGH RISK! NFA.
by NonComposMentis
#FUN/USDT#FUN The price has broken the rising resistance line. He tested it again on a frame for several days. The resistance line has always been very strong but now it will act as support after breaking it again. Bearish triangle patterns on every breakout to the upside and currently the big bearish triangle will break out. The current entry areas are at the current support areas 0.0043. It is expected to rise to areas 0. 011 meaning an expected rate of 120%.
Long
by CryptoAnalystSignal
3
Bajaj Finance - Management Quality & Economic MoatNSE:BAJFINANCE Bajaj Finance Ltd, one of India's largest and most diversified Non-Banking Financial Companies (NBFCs), has exhibited robust management quality and developed a significant economic moat in the financial services sector. Management Quality: Strategic Growth: Bajaj Finance Ltd has shown a consistent focus on strategic growth and resilience, particularly evident during the COVID-19 pandemic. Despite the disruptions caused by the pandemic, the company maintained a nuanced strategy on acquisition and underwriting across its businesses. This adaptability reflects strong managerial foresight and capability. Financial Performance: In FY2022, Bajaj Finance recorded a 29% growth in assets under management (AUM) and a 59% growth in profit after tax on a consolidated basis. The company managed to achieve this impressive growth despite disruptions in business and elevated credit costs. Capital Adequacy and Risk Management: Bajaj Finance remains well-capitalized with a capital-to-risk weighted asset ratio (CRAR) of 27.22% as of March 31, 2022. This is among the best for large NBFCs in India. The company's robust risk management practices have resulted in a strong portfolio quality, with Gross NPA at 1.60% and Net NPA at 0.68%, among the lowest in the industry. Operational Efficiency: The company's operational efficiency is highlighted by its diverse customer base, digital transformation, and omnichannel strategy. This approach has enhanced customer experience and contributed to business growth. Economic Moat: Market Position and Sectoral Importance: As an NBFC, Bajaj Finance has become an integral part of India's financial sector. Its assets, worth more than ₹54 lakh crore as of March 31, 2021, constitute about 25% of the balance sheet size of the banking sector. Rapid Asset Growth: Over the last five years, NBFCs' assets have grown at a cumulative average growth rate of 17.9%, with Bajaj Finance being a key contributor. Customer Expansion: Bajaj Finance's customer franchise grew significantly, adding 2.21 million new customers in Q4FY22 alone. This growth in customer base is a testament to the company's strong market penetration and customer retention strategies. Diversification and Innovation: The company has diversified its product offerings and continued to innovate, leveraging its understanding of regional dynamics and customer preferences. This diversification has enabled it to tap into various market segments effectively. Strengths and Weaknesses: Strengths: High growth rates anticipated by analysts in the coming years. High profitability due to outperforming net margins. Frequent upward revisions of sales forecasts. Strong analyst recommendations and upwardly revised price targets. Weaknesses: High valuations in earnings multiples. High valuation levels compared to the size of its balance sheet. Limited generosity in shareholder compensation. Conclusion In summary, Bajaj Finance Ltd demonstrates strong management quality characterized by strategic growth initiatives, robust financial performance, and effective risk management. Its economic moat is underpinned by its significant market position, rapid asset growth, customer expansion, and product diversification. The company's strengths in maintaining high profitability and adapting to market changes are counterbalanced by concerns about its high valuation levels and shareholder compensation policies.
NSE:BAJFINANCELong
by amitlall_79
Oberoi Realty Ltd. - Management Quality and Economic Moat About NSE:OBEROIRLTY Oberoi Realty Ltd, a prominent real estate development company in India, has demonstrated a high level of management quality and has established a significant economic moat in its sector. Management Quality: Strategic Growth and Diversification: Oberoi Realty has strategically focused on developing a diverse range of real estate projects, including residential, commercial, hospitality, and retail segments. This diversification helps in mitigating market volatility and caters to a wide range of customer needs. Financial Performance: The company has shown strong financial performance, with sales volume increasing by 104% year-on-year, driven by new project launches. For instance, the launch of Elysian Tower B in Goregaon significantly boosted sales. Operational Efficiency: Oberoi Realty's operational efficiency is highlighted by its effective management of key projects and steady growth in various segments, including hospitality and commercial developments. Economic Moat: Market Position and Brand Recognition: Oberoi Realty is well-recognized for its premium projects and has established a strong brand in the real estate sector, especially in the Mumbai Metropolitan Region (MMR). This brand recognition contributes to its competitive advantage and customer loyalty. Project Portfolio: The company's diverse project portfolio, including key residential projects like Exquisite by Oberoi Realty, Esquire by Oberoi Realty, and commercial projects like Oberoi Chambers, strengthens its market position and offers steady revenue streams. Strong Sales and Development Pipeline: The company's ability to maintain a robust pipeline of ongoing and upcoming projects, such as the anticipated launch in Thane and subsequent phases in Borivali/Goregaon, positions it well for future growth. Strengths and Weaknesses: Strengths: Strong operating performance with a focus on high-value projects. A diverse range of ongoing projects, contributing to a stable growth outlook. Positive outlook due to strong demand in upcoming projects and a robust brand value. Weaknesses: The challenge of increasing trade receivables, indicating potential issues in cash flow management. Exposure to stringent rules and regulations in the Indian real estate sector, which can impact operational flexibility. Conclusion In summary, Oberoi Realty Ltd's management quality is characterized by its strategic focus on diversified real estate development, robust financial performance, and efficient project management. The company's economic moat is reinforced by its strong market position, brand recognition, and diverse project portfolio. While the company has notable strengths in its operational performance and project pipeline, it needs to manage its trade receivables effectively and navigate the regulatory landscape efficiently.
NSE:OBEROIRLTYLong
by amitlall_79
How Short rates affect EURUSDThis excerpt is part of a larger blog post where I'll delve into my 2024 trading strategy and explain the rationale behind my trades. For those new to trading, early career decisions play a pivotal role in shaping one's trading trajectory, significantly impacting both profitability and mental ability to continue trading over the years. The two choices are clear: 1. Follow trade signals devoid of explanations, endorsed by traders concealing their identity, background and their P&L data. These traders may excel at marketing on social channels but might be grappling with substantial losses or in most cases lack proof of making consistent profitable trades in their short careers. They often will have conflict of interest arrangements with brokers, encouraging frequent trading leading to unnecessary losses. OR 2. Grasp the art of consistently making trades by understanding fundamental drivers. This involves being discerning about trades based on volatility parameters that have a higher probability of profit. If option 1 resonates with you, then it's time to redirect your attention to the myriad of 'Educators' who, despite lacking real trading experience, are eager to part you from your hard-earned cash. Always demand a verified P&L link (not screen shots) and observe their response. For those opting for option 2 , this marks the commencement of a series of blog posts interpreting endogenous and exogenous factors that influence forex pairs and how to capitalize on them. Background. When I formulate a trade idea, my first task is to gauge the purchasing power of a currency. This involves analyzing an extensive set of historical indicators like PMIs, NMIs, CC, building permits, etc. The resulting scorecard, based on historical values, aids in determining whether a currency is gaining or losing purchasing power. Comparing this exercise across other G10FX currencies provides the foundation for my trade. I can identify which currency has a short bias, which has a long bias, and the specific pair I am confident in shorting or going long. All this occurs before delving into volatility parameters (which we'll explore in a future post). When a future data is released, the movement in the pair is either confirming or contradicting the trade idea, the trade idea is still valid but maybe it doesn't have as much margin of safety as first thought. In this blog, I'll delve into one key statistical driver— the short-term interest rate differentials. While crucial, it's not the sole determinant of EURUSD movement. Last month, Jay Powell's Fed hinted at considering three rate cuts in 2024. This decision stems from the U.S. economy's accelerated path to disinflation. Powell, having waited for inflation since 2018 and taking no action in 2021 & 2022, aims to prevent the economy from slipping into deflation. Simply put, disinflation benefits equities and the economy, but deflation is detrimental to jobs and the stock market. Meanwhile, the ECB has adopted a cautious "wait and see" approach, despite its economy teetering on the brink of deflation and a slowing trajectory that may raise concerns later on. The ECB is keen to avoid replicating the error made by Jean-Claude Trichet, who acted hastily in 2012, leading to the collapse of several Greek and Italian banks and triggering a 14-year period of Euro instability. Notably, the ECB operates under a single mandate, distinguishing itself from the Federal Reserve, which manages two mandates. Currently, the ECB has communicated no intention to engage in rate cuts, opting to maintain higher rates until the data supports such a shift, particularly if inflation consistently remains below the 2% threshold. Given the current scenario, we work with the available information. According to the latest dot plots, the Federal Reserve anticipates three rate cuts, while market sentiment hints at eight cuts in 2024, not all of which have been fully factored in yet. Comparing the current interest rates: Federal Reserve: Current: 5.500% Priced in (10-year): 3.8% (1.7%) European Central Bank: Current: 4.500% Priced in (10-year): 2% (2.5%) The existing interest rate differential is expected to continue narrowing towards 0.8%, propelling the EURUSD higher to around 1.20-1.23 by year-end as new data confirms the U.S. trajectory toward disinflation. While this ascent may not follow a linear path, periodic reevaluation of the trade (around 1.15-1.17) will be necessary as quarterly data is released. There's potential for an accelerated upward movement on EURUSD, reminiscent of the 2017-2018 surge from 1.05 to 1.25. With the trade idea now taking shape, the focus shifts to volatility parameters. These factors will dictate trade size, determine permissible drawdown levels before exiting, and guide decisions regarding necessary hedges. Details on these considerations will be explored in future posts. For full transparency, my P&L (+700%) is readily available on my profile page, along with information on my community. Wishing fellow traders a successful hunt and a happy new year.
TVC:DE02YLong
by Macro-Traders-Strategies
1
MATIC/USDT 1DInterval ChartHello everyone, I invite you to review the MATIC chart on a one-day time frame. Let's start by identifying the downward trend using the yellow line, which shows that the price has gone up and is currently struggling to stay above it. Let's start by marking support places for the price and we can see that the first support is at $0.86, but if the price drops lower, we have the next support at $0.72, and then the next support at $0.62. Looking the other way, we can similarly determine the resistance areas that the price must face. And here we see that currently the price has been rejected by the resistance at $1.15, but if we manage to overcome it, we will move towards the resistance zone from $1.34 to $1.57. When we turn on ema cross 50 and 200, we will see the place where the indicator confirmed the return to a strong upward trend. The CHOP index indicates that there is still some energy left for movement. The RSI indicator shows that we have returned to the place where there was a previous rebound, while the STOCH indicator has exceeded the upper limit, which resulted in a slowdown in growth and may result in a price recovery.
M
by cryptodailyuk
ETH/USDT 1DInterval ChartHello everyone, I invite you to a review of ETH in pair with USDT, also on a one-day time frame. First, we will use the yellow line to mark the downward trend lines from which the price came out on top. Now let's move on to marking the support places. We will use the trend based fib extension tool to mark supports, and as you can see, the first support is at the price of $2,152, but if the support is broken, we may see a drop to the area of the strong support zone from $1,881 to $1,738. Looking the other way, we can similarly mark places where the price should encounter resistance on the way up. And here we have the first very strong resistance at the level of $2,459, and then the price must face the resistance zone from $2,833 to $3,028. Now please look at the RSI indicator, which shows a slight rebound from the middle of the range, with room for price growth. However, the STOCH indicator shows that we are exceeding the upper limit, which may limit the upward movement. Index CHOP indicates that there is a lot of energy for the upcoming move.
by cryptodailyuk
BNB/USDT 1DInterval ChartHello everyone, I invite you to review the BNB chart. As we can see, after the announcement of the new lanchpad, the price with dynamic movements overcame a strong downward trend line. Also, when we turn on EMA Cross 50 and 200, we will see that the indicator confirms the return to a strong upward trend, now we need to watch whether we will maintain this trend. After such a dynamic increase, it is worth spreading the Fib Retracement mesh to check the current resistance. And here you can see that the price is approaching a strong resistance zone from $320 to $352. However, when the price starts to reverse, we can similarly determine support, and we can see the first significant support at the level of $271, and then we can see the price return to the strong support zone from $225 to $201. The RSI indicator shows that we have exceeded the upper limit, which may result in a price recovery, and the situation on the STOCH indicator is similar, which may also result in a recovery. However, the CHOP index shows that this movement is running out of energy.
by cryptodailyuk
GBPUSD: Bullish Rebound Confirmed, Eyes Set on 1.28321In the intricate realm of global finance, the decisions and policies of major central banks wield considerable influence over currency markets. One such pivotal institution is the Federal Reserve, the central bank of the United States, whose recent policy trajectory has had a discernible impact on the GBPUSD currency pair. This essay delves into the nuanced dynamics that unfolded in response to the Federal Reserve's dovish stance and its consequential effect on the GBPUSD exchange rate. The Federal Reserve's Dovish Turn: Central to this narrative is the Federal Reserve's decision to temper the pace of interest rate hikes. The Fed opted for a dovish stance, signaling a cautious approach towards tightening monetary policy. Powell's inclination towards dovishness, characterized by a reluctance to aggressively raise benchmark interest rates, marked a departure from more hawkish postures seen in the last year. Impact on GBPUSD: Commencing on December 14th, an observable surge in the GBPUSD exchange rate ensued, catapulting from 1.25002 to 1.27937. This substantial uptick was emblematic of market participants reacting to the Federal Reserve's dovish signals, with investors seeking higher-yielding assets in response to the diminished allure of the U.S. dollar. The relative attractiveness of the British pound against its American counterpart found favor among traders, contributing to the pronounced rise in the exchange rate. Support Levels and Resilience: While the GBPUSD pair experienced a subsequent correction, touching the support level at 1.26124, its resilience was noteworthy. The bounce back from this support level underscored the underlying strength and confidence in the pound, even in the face of corrective movements. This resilience is indicative of a market sentiment that continues to favor the British currency. Future Trajectory: A Glimpse at 1.28321: As the GBPUSD pair rides the waves of market sentiment and central bank policies, forecasts point towards a potential further ascent. The likelihood of the exchange rate climbing to 1.28321 is grounded in the persisting dovish stance of the Federal Reserve, which, if sustained, could continue to dampen the appeal of the U.S. dollar in comparison to other currencies. Rejection at Support: Unleashing Bullish Momentum In the 2-hour timeframe, GBPUSD witnessed a crucial rejection at the 1.26903 support level, signaling a robust defense by bulls. This pivotal event serves as a potent indicator of underlying strength, hinting at a potential shift in market sentiment and affirming the narrative of a bullish continuation. Technical Analysis: Bullish Rejection Pattern Beyond numerical significance, the rejection at 1.26903 represents a convergence of market forces. Buying interest surpassed selling pressure, forming a bullish rejection candlestick pattern. Traders interpreting this pattern would likely see it as a confirmation of the market's intent to resume its upward trajectory. Continuation of Uptrend: Fueled by Resilience Confirmation of the rejection aligns with GBPUSD's resilience amid corrective movements. Buoyant market sentiment, driven by the Federal Reserve's dovish stance, acts as a catalyst for renewed upward momentum. Surpassing the previous high of 1.27937 becomes critical, paving the way for an ascent towards the envisioned target of 1.28321. Traders armed with confirmation from the rejection may target this milestone in the ongoing bullish trend. Risk Management: Navigating Uncertainties While the support rejection supports a bullish outlook, prudent risk management remains crucial. Unforeseen geopolitical or economic developments could introduce volatility, necessitating vigilance. Traders must be mindful of stop-loss levels and stay attuned to evolving market conditions. Conclusion: In the dynamic realm of currency markets, the rejection at the support level of 1.26903 serves as a pivotal chapter in the ongoing saga of GBPUSD. It not only validates the resilience of the pound but also provides a technical confirmation for those seeking to ride the anticipated wave of bullish momentum. As the pair gears up for a potential ascent towards 1.28321, traders and analysts alike will closely monitor the evolving landscape, mindful of the delicate balance between opportunity and risk in the ever-shifting currents of the foreign exchange market.
Long
by fardycurry
BTC Dominance 4HChartHello everyone, I invite you to check the current situation on BTC domination on the four-hour interval. First, we will use the blue lines to define the local channel of the downward trend in which the price has rebounded from the upper limit. Now we can move on to marking support places in the event that capital continues to move to alts. And here, first of all, we have visible support at the price of 52.52%, then at the lower border of the channel there is a visible support zone from 52.10% to 51.57%, and then we can see support around 50%. Looking the other way, we will check the resistance areas, and here we can see that resistance has formed at the level of 53.12%, then there is a resistance zone from 53.59% to 53.86%, and then strong resistance around 54.58%. Please pay attention to the CHOP index which indicates that most of the energy has been used, on the RSI indicator we have returned to the support point, which could have resulted in a slowdown in the decline, while on the STOCH indicator there is a movement below the lower limit, which may also translate into a rebound.
CRYPTOCAP:BTC.D
by cryptodailyuk
What is Fundamental Analysis in the Forex Market?Fundamental Analysis in Forex Trading: Factors that Affect Currencies READING TIME: 11 MINUTES Estimating future price movements in the currency market is challenging for many. Globally, the foreign exchange market commands the biggest slice of the financial ‘cake’, claiming an eye-watering US$6.6 trillion in global FX market turnover. Traders will use a variety of tools to assist them in predicting the price movement, most commonly technical analysis and fundamental analysis are methods that traders use to get a gauge of potential movement in the market. Fundamental Analysis Defined Currency pair in forex refers to, two currencies are paired together and quoted through a ‘base’ and ‘quote’ currency. The euro in EUR/USD (a major currency pair) is the base currency and represents one unit; the US dollar is the quote currency and provides the value of a currency: the euro in this case. Fundamental analysis studies economic developments of a country, events influencing the supply and demand of their respective exchange rates, either positively or negatively. Analysts employing fundamental analysis tend to approach markets using a macro-driven theme. Macro analysis, or top-down approach, focuses on broad economic factors. This involves a comprehensive assessment of the economy, evaluating aspects such as economic indicators—interest rates, growth and inflation—as well as central bank policy. Fundamental analysis is composed of three core elements: • Central bank policies • Economic indicators • Geopolitical events These three components working in harmony should translate to clearer market trends and present potential trading opportunities. If one of these areas is in disorder, interpreting a fundamental picture becomes difficult. Fundamental analysis essentially informs traders and investors why the market advances and declines, and provides a trade decision: to buy, sell or trade flat. Central Banks A country’s central bank is charged with the duty of regulating banking institutions and implementing monetary and fiscal policies. Well-known central banks: • United States Federal Reserve (or ‘Fed’) • European Central Bank (ECB) • Bank of England (BoE) • Bank of Japan (BoJ) • Reserve Bank of Australia (RBA) Everything begins with the central bank and they’re assessment of economic indicators. Traders and investors attempt to anticipate a central bank’s actions by evaluating economic indicators and reacting to the outcomes from the forecast (Actual versus Variance). The market projects a forecast for an economic indicator and subsequently responds to the actual figure released. Ultimately, trading opportunities present themselves when economic data harmonises with a central bank’s sentiment. This—coupled with a well-defined technical approach to fine tune entry techniques—delivers an overall trading picture to operate with. Central Bank Announcements: Major central banks meet every 4-6 weeks. The Fed and BoE meet every six weeks (8 times per year), while the RBA meets 11 times each year. Market trend, or ‘market direction’, is derived from the sentiment within the market, with the central bank acting as a stabilizer by using monetary policy. It is therefore crucial market participants recognise the arrangement of these central bank meetings and understand the terminology used. Central bank governors are the head of their respective central banks. The head of the US Federal Reserve currently is Jerome H. Powell; Andrew Bailey heads the Bank of England and the governor of the Reserve Bank of Australia is Philip Lowe. Central Banks: Why Are They Important? Central banks assess the current market sentiment at each meeting and consider whether any changes need to be made for the near-term monetary policy. The members will review data gathered over the last 6 weeks to assess on what measures need to be taken such as changing the current interest rates or using quantitative easing. A country’s central bank raising rates can be categorised by way of a ‘hawkish bias’; what they’re essentially doing here is talking up the prospect of raising rates. The prospect of cutting rates is also an option on the table for central banks, emphasising a ‘dovish bias’. Either a hawkish or dovish tone can translate into big price moves in financial markets. If economic conditions remain unchanged, the central bank is likely to adopt a neutral stance: no bias. Typically, the central bank meeting is accompanied by a statement and, of course, the interest rate decision. These are critical to understand. The statement is the primary avenue employed to communicate with investors regarding monetary policy (actions undertaken by a central bank): the outcome of the vote on interest rates alongside other policy measures and economic commentary. In addition, here you will find what the central bank’s forward projections are. A week or so later, the ‘minutes’ are available: a more comprehensive analysis of the statement and the talking points discussed in the meeting. See here for the latest US Federal Open Market Committee (FOMC) Statement. Out of the interest rate decision and statement, you’re looking for market sentiment—the direction provided by central banks and the core overall trends in the market. The first two weeks of every month is ‘usually’ clear in terms of central bank sentiment, following a fresh statement from the bank. Economic Indicators Economic indicators, as their name implies, are statistics—often on a macroeconomic scale—designed to measure economic activity. Traders and investors use these indicators to analyse the well-being of a country’s economy. Government organisations and private groups release several economic reports on a weekly, monthly and quarterly basis, each measuring activity in a particular segment of the economy. Widely followed indicators are employment/unemployment (payrolls), inflation (consumer price index), growth (or gross domestic product), retail sales, the stock market, industrial production (Producer Price Index) and housing figures. In terms of release schedules, approximately five key economic indicators are released each week. No single indicator provides a clear picture of the economy’s health. At best, each indicator provides a ‘snapshot’ of current conditions. But when piecing the economic indicators together, you should get a clearer picture of how the economy is faring. However, it is crucial to understand that some economic indicators are more important than others at certain points in time. Inflation, as of this article, is important. Significant indicators to watch can be found on the statements from central banks in their forward guidance. Economic Calendar An Economic Calendar is widely used among independent Forex traders and investors. High-impacting economic releases are marked red. Orange represents potentially medium-impacting events and yellow indicates a low-expected impact on price levels, or price action. We also have Previous or ‘Prior’, ‘Forecast’ and ‘Actual’ figures. Forecasts are generally a collection of economists’ views which are then averaged. New Forex traders might want to note what the Q/Q and Y/Y labels refer to. Geopolitical Events Geopolitical tensions can complicate technical analysis and fundamental analysis, distorting the general flow of key fundamental drivers in the market. However, absent of disruptive geopolitical events, trending markets become visible. Geopolitics events are divided into wars and conflicts, terrorist attacks and international tensions. US-China trade is a good example and the ‘Brexit’ situation (United Kingdom exit from the European Union). The announcements surrounding geopolitical issues are usually not scheduled, unlike the central bank announcements and economic data. As you can imagine, this may cause confusion in currency markets and make them difficult to trade. Conclusion To wrap things up, fundamental market analysis in the Forex market looks at three core components: the central bank’s ‘direction’, economic indicators to provide instant bias, and the geopolitical situation. To aid timing, we use technical analysis to fine-tune entries. Like technical analysis, fundamental analysis involves broad study and is beyond the scope of an article to detail each element. For that reason, the objective of this article is to provide a foundation in which to build from.
Education
by FPMarkets
🚀 FET/USDT - Gem Coin for Bull Run 🌟Strategy: Consider FET as a gem coin for the upcoming bull run. Adopt a strategy of buying in every dip and holding in the spot. Buy-in Range: Accumulate in the range of %0.65 to $0.68 - $0.48 to $0.50. Targets: 🎯 $3.5 🎯 $5.5 Caution: Stay informed about the market conditions. Be prepared to adapt to changing trends. Potential Upside: If the strategy aligns with the bull market, reaching $3 and $5 targets could be achievable. 🔄 Stay Watchful: Remember, cryptocurrency investments carry risks. Make informed decisions and stay updated! 📈💹 #FET #USDT #CryptoInvesting 🚀📰
Long
by Richtv_official
1