Blog categorized as Stock Market

Stress testing in mutual fund risk management helps to understand how a fund might perform under extreme market conditions. It allows fund managers to check if the fund can handle sudden market shocks like crashes, interest rate hikes, or economic downturns. This helps in reducing risk and...

Structured investment strategies in mutual funds help manage risk and aim for steady returns. These strategies use a mix of assets like equity, debt, and derivatives in a planned way. They are designed to protect capital while also targeting growth. This is useful for investors who want a ...

Style drift in mutual fund evaluation means when a fund manager changes the fund’s original investment style or strategy. For example, if a large-cap fund starts investing in mid or small-cap stocks, that is style drift. This can create confusion for investors and increase risk because the...

Supply and demand directly control the prices in commodity trading. When supply is low and demand is high, prices rise. But when supply increases and demand is low, prices fall. Traders and investors study supply-demand data to decide when to buy or sell. This basic principle helps them ea...

Supply and demand play a major role in determining the prices of futures contracts. When demand for a commodity or asset increases and supply remains low or limited, the futures price tends to rise. On the other hand, if supply goes up and demand stays low, prices tend to fall. Futures mar...

Supply chain analysis helps fundamental investors understand how well a company manages the production and delivery of its products. A strong supply chain means better efficiency, cost control, and timely delivery—all signs of a healthy and competitive business. If a company faces frequent...

Supply chain disruptions play a big role in commodity trading because they directly affect the availability and price of goods. When the supply chain is delayed or broken, it becomes harder for commodities like oil, metals, or food grains to reach markets. This causes prices to rise or fal...

Support and resistance levels are important tools in stock trading that help traders understand where the price of a stock might stop moving and possibly reverse. Support is the price level where a stock tends to stop falling, and resistance is where it tends to stop rising. These levels g...

Sustainability-linked KPIs (Key Performance Indicators) in mutual fund investments help measure how well a company or fund is performing in terms of sustainability goals like reducing pollution, using clean energy, or improving social impact. These KPIs help investors know if a company is ...

Swap rates in forex trading are the interest rate differences between the two currencies in a currency pair. When you keep a forex trade open overnight, you either earn or pay a swap based on this rate. Swap rates play an important role in deciding the cost or profit of holding a trade ove...

Swaptions are used in institutional portfolio management to manage interest rate risks. They give the option, but not the obligation, to enter into an interest rate swap. This helps institutions like banks, mutual funds, and pension funds to protect their portfolios from sudden rate change...

Synthetic long and short positions help traders in derivatives trading to mimic buying or selling an asset without actually owning it. These positions are created using a mix of options and futures contracts. They allow traders to benefit from price movements and manage risks more smartly.

Tape reading is used in short-term trading to watch real-time price movements, volumes, and order flows to understand market direction. Traders use this technique to make quick decisions about buying or selling stocks based on how prices behave in the moment.

Tax-loss harvesting is a smart way to reduce your tax bill by selling investments that are making a loss. These losses can be used to offset profits you made on other investments. It helps lower your overall taxable income, and you can reinvest the money into similar assets to stay investe...

TDS (Tax Deducted at Source) is applicable on mutual fund withdrawals only in some specific cases. From April 1, 2023, if you withdraw money from a mutual fund where dividends are paid or if it's a non-PAN linked account, TDS may be deducted. For capital gains, TDS is not deducted for resi...

Technical analysis plays a key role in day trading as it helps traders make quick decisions based on price charts, patterns, and indicators. It helps identify entry and exit points by studying the stock's short-term movements. Day traders rely on these tools to earn profits within a single...

Technical analysis helps traders and investors decide the right time to buy or sell a stock by studying its past price movements and volume. It uses charts and indicators to identify trends, support-resistance levels, and market signals. This helps in making smarter decisions instead of gu...

Technical analysis in mutual fund investing helps investors understand price trends and entry or exit points by studying charts and patterns. While mutual funds are usually long-term investments, technical analysis can help investors choose the right time to invest, switch, or redeem based...

The 200-day moving average is a popular indicator used by traders to understand the long-term trend of a stock. If the stock is trading above the 200-day average, it signals a strong and positive trend. If it is below the 200-day average, it shows weakness. It helps traders decide when to ...