So today we are going to talk How to know a day in advance that the price of which stock can go up and which stock is going to fall?
Yes, to some extent, you can get an accurate idea of which stock will go up or down as soon as the stock market opens on the next day or tomorrow. For this, you have to keep an eye on some things, about which we will tell you today.
“To find out whether the price of any share or stock will go up or down, you can use different methods of technical analysis such as; Using candlestick chart patterns, trading terminals, moving averages, support resistance and various indicators can determine whether a stock will rise or fall.’
You must have seen some expert people of the stock market that they give accurate information about whether the Indian stock market will go up or down 1 day before. When the market opens the next day, most of their information turns out to be correct.
But how does this happen and how can you do it?
Look, let me clear you one thing that no one in the world can tell with 100% guarantee that tomorrow the stock market will go up or it will go down.
You can only make an estimate keeping in mind a few parameters which can only give an accurate idea of how the stock market will be performing the next day to some extent.
Those who are new investors or traders in the stock market, their thinking is such that someone from anywhere just tells them which stock is going to grow and they should immediately go and invest money in it and become rich quickly.
But the opposite happens with such people who think that means their money is lost.
Then what should you do? Like other experienced stock market experts, how do you know a day in advance if the share price may go up and the stock is going to fall?
Let us know through some points whether the stock market will rise or fall tomorrow, how can you know 1 day before?
Keep an eye on the US stock market
As you know, America’s economy and American stock market is the strongest and largest in the world. So when there is a crisis on the American stock market or there is a fall, then the whole world market is shaken, which includes the Indian stock market.
Similarly, when the American market goes up, the Indian stock market also sees an uptrend.
It has often been seen that if the American stock market opens with a gap up opening, then the Indian stock market also opens with a boom, similarly when there is a downward trend in the American market, then its effect on the Indian stock market too. Looks.
Now this is not a fixed rule but if you notice it happens 8 out of 10 times.
The best medium to track the American market is ‘Dow Jones’. The ‘Dow Jones Industrial Average’ is an index of the largest companies in America, which gives an almost accurate estimate of the entire stock market.
That’s why you should keep an eye on the Dow Jones index daily. You will see most of the times that the day the Dow Jones Index goes up, the Nifty and Sensex in India also go up.
It has happened many times that the American market has gone up and the Indian market has seen a decline.
That is why it is not necessary that you just sit by this rule, but yes in 60 to 70% of the cases the performance of the Indian stock market is similar to that of the American market.
Keep an eye on other overseas markets as well
Apart from this, you should also keep an eye on the stock market of other countries (European market) because it has been seen mostly that when there is a big fall, its effect is seen on all the stock markets of the world as in 2008 financial crisis and covid- 19 happened during the time of crisis.
And similarly, when there is a recovery in all the markets of the world, then there is a recovery in the Indian stock market as well because the world economy is interconnected.
If you look at an example of this, When the price of crude oil rises, the stock markets of many countries go down, including the Indian stock market, because 70% to 80% of crude oil in India is imported from abroad.
And if you sit down to understand its history, then you will come to know that crude oil is such a commodity that has a great impact on India’s economy and stock market.
Which we will discuss in detail sometime, now let us understand the next point.
Check ADR of Indian Stock Market Companies
ADR stands for American Depositary Receipt. You must have seen that some stocks of India are also listed on American Stock Exchange (NYSE) like Infosys, Wipro, HDFC Bank, Pfizer, Dr. Reddy etc.
And you must also know that the opening and closing timings of Indian Stock Market and American Stock Market are different. Which you can take advantage of.
The shares of listed companies of India which are listed on the stock exchanges of foreign markets perform almost the same as they do in India.
Suppose tomorrow you want to buy Wipro shares, then you track the movement of Wipro shares listed on the New York Stock Exchange (NYSE) as soon as the American market opens.
If the stock goes up, then when the stock market opens in India, it will go up, the same will happen in the case of a fall.
By the way, this technique is useful for more traders than investors because if the stock remains down all day and does not go up then you should not make a position in it.
But if the stock goes up a lot then you buy that stock as soon as the market opens, because there will be 60-70% chance that you will make profit only.
Most of the intraday traders and F&O (Futures and Options) traders can take advantage of this. Because he earns profit when the American market rises and also earns money by short selling due to fall.
I tell you again that 10 times out of 10 this strategy doesn’t work because if the hundred percent were like this then all the people would have started doing the same thing, so there is definitely some risk in it but still it is about 60-70%. The method works.
Now you have to see which Indian companies’ ADR i.e. duplicate shares are listed on the stock exchanges of other countries.
For this, you just have to search on Google by typing India ADR and then you have to open the first website, you will see the list of Indian ADR (in front of the stock it is also told how much (%) it has gone up or down)
Check Stock Delivery Position from NSE
This point is very important. If you want to know which stock will increase a day in advance, then you have to check the delivery positions by visiting the official website of NSE i.e. National Stock Exchange.
Viewing delivery positions tells you what percentage (%) quantity traded in the stock. If the quantity is very high then it means that an institutional investor has bought the goods.
This could mean that the stock is expected to rise tomorrow.
If a stock sees more than 40 to 50% delivery 1 day before, then it means that tomorrow that stock will open with a gap up opening ie there are signs of going up. That’s why you must check the delivery position of the stock you want to buy once.
SGX Nifty View
Do you check Singapore Nifty before Indian stock market opens? If not, then start checking from today as it tells you the performance of India’s Nifty.
Most of the traders predict Indian Nifty going up or down by looking at SGX Nifty.
WHAT DID YOU LEARN TODAY
I hope you have liked my article on How to know a day in advance that the price of which stock can go up? It has always been my endeavor to provide complete information about the future of stock market to the readers, so that they do not have to search any other sites or internet in the context of that article.
This will also save their time and they will also get all the information in one place. If you have any doubts about this article or you want that there should be some improvement in it, then you can write comments below for this. this is only for educational purpose.