Investor Choices

 Bank Nifty ( Head and shoulder Pattern)  A very nice head and shoulder pattern has given a breakout on Friday in BankNifty on 1hourly time frame we can see it very nicely.  Now as per the rule it provides target as equal to the depth of the head and neckline. Which is almost 10% so we can expect a 10% upward move in Bank Nifty.  There might be two consequences: 1. It may directly go towards target where it will be difficult to manage risk( so it is advisable if market open high on Monday avoid the entry) 2. If market pull backs toward neckline of the head and shoulder so that will be nice trade we can enter if it makes support and suits our risk parameter. Thank you.

When a company starts a business has to face two kinds of risk one is systematic and another is unsystematic risk.  1. Systematic risk -   It is non diversifiable risk. It exists  because of macroeconomic factors like- Political, Legal, Economical, Social, Legal Rules and Laws. Because it exists into the system so it is a non diversifiable risk.   2. Unsystematic risk -   It is diversifiable risk. It exists  because of microeconomic factors like- Weak internal control, Weak management, Bad Strategies, Bad product line.    Example of unsystematic risk - Business Risk or Financial Risk. When we talk about beta it is a systematic risk which is non diversifiable. Which measures the volatility of the stock with respect to the market. High beta stocks: These stocks outperforms the market when market rises provided financials should allow and falls heavily when the market does fall. Low beta Stocks: These stocks neither outp...