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Quarterly Results Trading Strategy

 

The companies present in the share market declare their quarterly results every three months in a year. If you plan your trading strategies based on these results then how to trade here, let us find out in our today’s blog in a step-by-step manner.

 

In the share market, behind every share is a company that declares its quarterly results every three months. So which company is going to declare its results and when? We can find this information on the websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). If you too wish to find out which company is going to declare its results in the future then we have mentioned the link for the same below. Do check it out. Also, if you have downloaded our app Aryaamoney, then we have provided this link there too.

 

Now, if some company displays excellent results then you shouldn’t blindly trade there. If you wish to carry-out short-term or medium-term trading then along with excellent results, the share should also have an excellent chart structure. It may happen that if some company is declaring very good results, its stock price must have already reached a high level. This is a possibility. The investors which have a fair idea that the company is going to declare excellent results, such investors make a buying in that share even before the company declares its results. Thus, when the company declares excellent returns, the share price has already registered high growth. 

 

After the excellent results are declared, if we analyze the chart and find that the share has already registered a good growth even before the results were declared then it is said that this news is discounted. So short-term and medium-term trading in such shares becomes a risky choice. Also, it is possible that after the excellent results are declared, the company’s share may indicate a new uptrend. Now, how to identify whether after the declaration of excellent results, the company’s share is showcasing a new uptrend or not? After the declaration of excellent results, if the chart indicates that the share after moving in a limited range has given a signal of moving out of the box then we can say that the company along with excellent returns has an excellent chart structure as well. Thus, here we can opt to carry out short-term or medium-term trading.

 

Let us understand this with a simple example. Recently Muthoot Finance has declared excellent results. After the declaration of excellent results, if we analyze the chart of the company, we find that the share after moving in a limited range has indicated moving out of the box i.e. the share has given a signal of break-out. So as per the short-term chart, we can opt for a trading strategy here. As per the chart, till the time the share of Muthoot Finance is above the level of Support i.e. 999, you can expect the share to be in an uptrend for the short-term or medium-term. The share doesn’t move in a straight direction like a rocket, it moves up and down before it goes up. So till the time, the share is above the level of support i.e. 999, you can trade for short-term or medium-term here by following a stoploss.

 

Recently HDFC Limited has also declared its results.  After the declaration of excellent results, if we analyze its chart structure, we find that the share of HDFC after moving in a limited range has indicated moving out of the box. Now, as a home-work, you have to analyze the chart structure of HDFC. Be it Muthoot Finance or HDFC, where to find their charts? There are too many options like you can find their charts in your broker’s app. Similarly, if you are a member of Aryaamoney then you can view it in your Chart Premium tool. So be it Muthoot Finance or HDFC Limited, if you wish to carry out short-term or medium-term trading then make sure to trade by following a stoploss here.

 

Now, how much should you invest in such shares? For this, you need to check the market valuation first. If you have downloaded our app Aryaamoney then in that we regularly update the market valuation details. If the market valuation is expensive, you are supposed to invest less even if the company has declared excellent results. And if the market valuation is in-expensive and as per the chart, the company’s share has indicated moving out of the box then in that case you can increase your investment there.

 

While trading, it is important to trade by following the right money management trading. And if you are trading for short-term or medium-term, make sure to follow the stoploss as you can go wrong anytime.

 

If you analyze the business models/structures of HDFC Bank and HDFC Limited, both have excellent business models/structures. So if you are planning for a long-term investment in these shares then as the market valuation is expensive, you are supposed to invest less. See, the expensive market can last for a long while too. Hence, you should invest by following the market valuation because this is what is known as Intelligent Investing.

 

In 2019 the market valuation was expensive but in 2020 when the market crashed the market valuation got moderate and we had an opportunity to increase our investments there. If you have patience, then even the market offers you the opportunity to create a pyramid of your investments there. As per the market valuation, the shares that have signaled to give a break-out, how to trade in such shares? If you wish to know then go to our app Aryaamoney. In that we have a program called Smart Trader Training Program, if you wish to you can subscribe to it as well. Along with the program, you also get free access for 60 days to our Chart Premium Tool that helps you to find out about the shares that are indicating moving out of the box, what should be the stoploss and when to book the profit. That’s means along with theory, you get practical assistance too.

 

If you wish to open your Demat account with India’s leading brokers, then you can check out the link given below. We would like to give a disclaimer here that all the advice given in this blog is for educational purposes. This is not any kind of buy/sell recommendation. We may or may not have our investment in the companies discussed here. Mr. Bhuushan Godbole, his company as well as the director board of the company has crores of investment in the share market as well as in gold and silver. This is our disclaimer/disclosure. So we’d like to mention this again that invest in the market after thorough analysis and also after discussing it with your financial advisor.

 

Keeping in mind the market valuation, if you wish to invest in companies earning excellent returns on invested capital and whose business model is excellent via SIP or Lump sum and also, if you want to know how your portfolio ideally should be then we have an exclusive service for that called Wealth Compounding Machine. In that, we provide regular updates for how your portfolio should be, if you wish to, you can subscribe to it.

 

In this way, in our today’s blog, we understood that if along with excellent results if the chart structure is also excellent then you can trade here with proper money management and by following a stoploss. Be it short-term, medium-term trading, or long-term investment you shouldn’t forget that the share market is a roller coaster ride. But in a roller coaster ride, you tentatively know when the ride is going to go down but when the share market is in an uptrend you never know when it may go down. Hence, it is important to form a pyramid of your investments in the share market. Invest less when the market valuation is expensive, invest more when the market valuation is in-expensive.

 

Until next time…

 

Happy Trading, Happy Investing!!!

 

NSE Results Calendar - https://www1.nseindia.com/corporates/...

BSE Results Calendar: BSE Forthcoming Results - https://www.bseindia.com/corporates/F...

 

 

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