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• Fundamental analysis involves

I. Economic Analysis

II. Industry Analysis

III. Company Analysis

• Fundamental includes evaluating the company's stock to find its intrinsic value, and analyze factors that may affect the price in the future.
• Concepts used in FA are Return on equity, Intrinsic value, price to earnings ratio, etc.
• It requires the right amount of money and time to research. A single person can't research on financial data of every company for. Hence, it requires a research team which is quite expensive.

Banknifty opened Gap Down and continuously moved down. In the last two days, it almost falls more than 1200 points. We can capture this move from nearly the top of 23000.

On the hourly chart, the MACD signal gave bearish crossover yesterday, and we saw a good fall in Banknifty.

Gann Box:

FNO Data:

Trade Plan:

The daily VIX chart shows the formation of Doji candles at the bottom and reversal. The daily RSI crossed the previous resistance level of 40. The MACD signal gave bullish crossover suggesting bullish move in VIX. So the daily chart shows the possibility of VIX moving towards 28 levels in the coming days.

The weekly chart shows the formation of wedge and reversal from the bottom. VIX may move towards the upper wedge line @ 29-30.

So VIX suggesting the bearish mood of the market and hence the high possibility of fall in Nifty-50 and Banknifty in the coming days/weeks.

VIX Gann Box:

The daily Gann Box shows a reversal from the mid-zone of time factor points. The next time factor date is Jul-21. So will VIX continue to move high till Jul-21 or it will reverse from angle point? Wait and watch.

Using VIX to spot Intraday Reversal on Indices:

Recent examples of trade captured by me with this method:

PVR: CMP - 1047.10

NIITTECH: CMP - 1592.90

MCDOWELL-N: CMP - 636.10

JINDAL STEEL: CMP - 169.15

Banknifty did all our targets below 22700 (22500 & 22350). Low made was 22320.

VIX:

FNO Data:

Trade Plan:

Banknifty opened above 22700, our level for long entry and completed target of 22900. It was rangebound throughout the day between 22700 and 22900. Only in the last hour, it moved sharply towards 23000 levels (top made was 22998).

Banknifty opened Gap up @ 22700 and then achieved all our bullish targets of 23900/23000. But the upmove was very choppy and looked like a terminating pattern and was not easy to trade. So I did not take a trade on the upside.

Gann Box:

Gann Angles:

VIX:

FNO Data:

Trade Plan:

Banknifty gave first trade today. It corrected on the downside in the first hour and consolidated for the next 2 hours before it gave sharp upmove and completed our targets of 22450/22550 and almost done 22700 (top made today was 22674).

FNO Data:

Trade Plan:

In the update for Jul-02 post, I mentioned "The hourly chart gave a bullish MA crossover. Bullish crossover after bearish crossover suggests the rangebound possibility. The range maybe 21300-22300."

VIX:

FNO Data:

Trade Plan:

Banknifty opened Gap up 400+ points, and then there was not much of trading opportunity as it was rangebound throughout the day. There is still a possibility of upmove towards 22500/22700, but the daily chart is showing a lack of momentum.

It is interesting to observe that Banknifty did not break the top made on Jun-24 @ 22479 though Nifty-50 made a new top. So there is a divergence in Nifty and Banknifty. It is a sign of weakness unless Banknifty catches with Nifty.

Jul-07 is the Gann date (minor time cycle). It will be interesting to watch whether it breaks Jun-24 high and reverse or continue upmove.

FNO Data:

Trade Plan: