Akar Market Research

03/12/2025

Upgrade your trading—4 smart option strategies you must learn. Watch now.

Learn 4 powerful option strategies that simplify decision-making and reduce complexity in trading. This 39-minute video covers:Covered Call – The smarter alt...

28/04/2025

🎉 Featured in StockTwits May Series! 🎉
My stock recommendation was featured in the StockTwits May Month Series video! 🙌

📌 Stock: GMDC
✅ Buy Above: 337
🛡️ Stop Loss: 294
🎯 Target: 405

Also thrilled to report that the target for Narayana Hrudayalaya, recommended in March, has been successfully achieved! 📈💥

🔹 I’m Akhilesh Jat, Proprietor of Akar Market Research, SEBI Registered Research Analyst.
Grateful for the continued trust and support. More insights coming your way — stay tuned!

👉 Follow for more expert stock recommendations and market insights.

25/03/2025

17/01/2025

Long Put Spread
The setup
Sell a put, strike price A
Buy a put, strike price B
Generally, the stock will be at or below strike B and above strike A

The strategy
A long put spread gives you the right to sell stock at strike price B and obligates you to buy stock at strike price A if assigned.
This strategy is an alternative to buying a long put. Selling a cheaper put with strike A helps to offset the cost of the put you buy with strike B. That ultimately limits your risk. The bad news is, to get the reduction in risk, you’re going to have to sacrifice some potential profit.
The sweet spot
You want the stock to be at or below strike A at expiration.
Maximum potential profit
Potential profit is limited to the difference between strike A and strike B, minus the net debit paid.
Maximum potential loss
Risk is limited to the net debit paid.
Taking here the example of INFY check in the image.

17/01/2025

Understanding Price Channels in Technical Analysis

A Price Channel is a technical analysis tool used to identify price trends and potential reversals by drawing two parallel lines: one above the price (resistance) and one below (support). Price Channels can be categorized into bullish and bearish types based on market direction.
Bullish Price Channel
A bullish price channel occurs in an uptrend, with the price consistently making higher highs and higher lows. The upper boundary acts as resistance, while the lower boundary serves as support. Traders typically look for buying opportunities when the price bounces off the lower boundary, expecting the uptrend to continue.
Key characteristics:
• Price moves upward, with higher highs and higher lows.
• Traders buy near the lower boundary.
Bearish Price Channel
A bearish price channel forms during a downtrend, where the price makes lower lows and lower highs. The upper boundary represents resistance, and the lower boundary is support. A price failure to break the upper boundary signals potential further downward movement, prompting traders to consider short positions.
Key characteristics:
• Price moves downward, with lower lows and lower highs.
• Traders sell near the upper boundary.
Trade Signals
In both channels, breakouts (price moving beyond the boundary) can signal continued movement in the direction of the trend. A breakout in a bullish channel suggests further upward movement, while a breakdown in a bearish channel indicates continued downward pressure.
Price Channels are useful for trend-following strategies and risk management, helping traders identify entry and exit points.

17/01/2025

Understanding the Bump and Run Reversal (BARR) Pattern: A Guide to Spotting Unsustainable Speculative Rallies

The Bump and Run Reversal (BARR) is a chart pattern that appears after excessive speculation drives prices up too quickly. Developed by Thomas Bulkowski, the pattern was first introduced in the June 1997 issue of Technical Analysis of Stocks and Commodities. It consists of three phases: the lead-in, bump, and run.
Lead-in Phase: This phase lasts for at least a month and represents an orderly price advance without excessive speculation. The trend line formed should have an angle between 30-45 degrees, which ensures that the bump that follows will be significant enough for a reversal.
Bump Phase: The bump is characterized by a sharp price advance, pushing prices further from the lead-in trend line. The angle of the bump's trend line should be around 50% steeper than the lead-in line, ideally between 45-60 degrees.
Bump Validity: A valid bump should indicate unsustainable speculation. The distance from the highest high of the bump to the lead-in trend line must be at least twice the distance from the highest high of the lead-in phase to the trend line.
Run Phase: After the bump, prices decline as they break through the lead-in trend line. The decline can be sharp, often followed by a retracement that tests the broken trend line as resistance.
The BARR is useful for identifying long-term unsustainable speculative advances. It can be observed in daily, weekly, or monthly charts and signals a potential significant price decline after a rapid advance.

17/01/2025

Tracking Nifty Milestones Over the Years
From 1995 to 2024, we've seen incredible growth in both duration and achievement. Below is a timeline showcasing some key milestones in our journey:
• 03-Nov-95: Started at 1,000 Nifty points.
• 14-Dec-04: After 9 years, 1 month, and 10 days, Nifty reached 2,000.
• 31-Jan-06: Nifty hit 3,000, taking 1 year, 1 month, and 17 days.
• 04-Dec-06: Reached 4,000 in 10 months and 4 days.
• 27-Sep-07: Nifty climbed to 5,000 in 9 months and 23 days.
• 11-Dec-07: Further progress to 6,000 in 2 months and 14 days.
• 12-May-14: Nifty achieved 7,000 after 6 years, 5 months, and 1 day.
• 01-Sep-14: Reached 8,000 in 3 months and 20 days.
• 14-Mar-17: Surpassed 9,000 after 2 years, 6 months, and 13 days.
• 26-Jul-17: Nifty moved to 10,000 in 4 months and 12 days.
• 23-Jan-18: Reached 11,000 in 5 months and 28 days.
• 03-Jun-19: Achieved 12,000 after 1 year, 4 months, and 11 days.
• 24-Nov-20: Nifty hit 13,000 in 1 year, 5 months, and 21 days.
• 01-Jan-21: Surpassed 14,000 in just 1 month and 8 days.
• 08-Feb-21: Reached 15,000 in 1 month and 7 days.
• 03-Aug-21: Nifty hit 16,000 in 5 months and 26 days.
• 31-Aug-21: Reached 17,000 in 28 days.
• 13-Oct-21: Surpassed 18,000 in 1 month and 13 days.
• 11-Sep-23: Achieved 20,000 in 2 months and 12 days.
• 08-Dec-23: Reached 21,000 in 2 months and 27 days.
• 15-Jan-24: Nifty reached 22,000 in 1 month and 7 days.
• 24-May-24: Surpassed 23,000 in 4 months and 9 days.
• 27-Jun-24: Achieved 24,000 in 1 month and 3 days.
• 01-Aug-24: Nifty reached 25,000 in 1 month and 5 days.
• 24-Sep-24: Surpassed 26,000 in 1 month, 23 days.
This timeline showcases the incredible growth of Nifty over the years, with each milestone reflecting the progress and potential of the market. Here's to continued growth and new heights!

17/01/2025

Cup and Handle Pattern: A Breakout Analysis from Nov 2022 to Apr 2023

The Cup and Handle price pattern is a classic chart formation used in technical analysis to identify bullish trends. This pattern resembles the shape of a cup, followed by a handle, and often signals a breakout to the upside once completed. Let’s analyze the Cup and Handle formation using the example of RVNL (Rail Vikas Nigam Ltd.) stock price movement.
On 29 Nov 2022, RVNL made a high of 84, marking the beginning of the Cup formation. The price then retraced, falling to 60 by 26 Dec 2022, creating the bottom of the cup. This retracement forms the left side of the cup. After hitting the bottom, the stock began to rally, reaching 82 by 16 Jan 2023, almost approaching the previous high of 84. However, the price faced resistance and retraced again, reaching a low of 56 on 1 Mar 2023, completing the deep part of the handle formation.
From 5 Apr 2023, RVNL’s stock began to form the right side of the handle, showing a gradual upward movement after the second retracement. This period of consolidation forms the "handle" of the pattern, indicating a final phase of accumulation before a potential breakout.
Finally, on 24 Apr 2023, RVNL broke out above the resistance level around 84, signaling the completion of the Cup and Handle pattern. This breakout signaled the potential for a strong bullish trend, and traders typically look for an upward price movement after such a breakout.
The Cup and Handle pattern in RVNL from Nov 2022 to Apr 2023 highlights how this formation can indicate a bullish reversal, with a breakout serving as a confirmation signal for traders. By identifying such patterns, traders can potentially capitalize on future price increases.
Chart Courtesy: TradingView

17/01/2025

Double Top Reversal
The Double Top Reversal pattern is a bearish chart formation indicating a potential trend reversal. It occurs after a strong uptrend, when the price forms two distinct peaks at roughly the same level, followed by a decline. The pattern is confirmed when the price breaks below the support level, known as the neckline.
Let's consider the example of PC Jeweller stock. On 1 Oct 2024, the stock made a high of Rs. 18.70, marking the first peak of the pattern. Afterward, the price retraced to Rs. 13.50 by 22 Nov 2024, forming the first trough. The stock then rallied again, reaching a higher peak of Rs. 19.30 on 18 Dec 2024, completing the second peak. Following this, PC Jeweller retraced to Rs. 13.80, and is currently trading at Rs. 14.85.
The Double Top pattern will be fully formed if the stock breaches the neckline, around the Rs. 13.50-13.40 support level. A break below this level would signal a potential bearish reversal, suggesting that the uptrend has ended and the price may move lower. Traders often look for this breach as an entry point for short positions.
It is important to note that price patterns are not foolproof and should be used in conjunction with other technical indicators for confirmation.
Chart Courtesy: TradingView
Disclaimer: This analysis is for informational purposes only and does not constitute a buy or sell recommendation. Always conduct your own research or consult with a financial advisor before making any investment decisions.

17/01/2025

What Are Price Gaps?
Price gaps occur on charts when there’s a blank space between the close of one trading day and the open of the next. Gaps typically happen due to significant buying or selling activity while the market is closed. There are two main types of gaps: up gaps and down gaps.
• Up Gap: Occurs when the low price after market close is higher than the previous day's high. It is often seen as bullish.
• Down Gap: Happens when the high price after market close is lower than the previous day's low. It is generally considered bearish.
Gaps usually result from news, earnings reports, or other significant events that create a strong shift in demand. For example, strong earnings reported after market hours may lead to increased buying, creating an up gap when the market opens.
Timeframe:
Gaps can appear on daily, weekly, or monthly charts. They’re more common on daily charts and are significant when accompanied by higher-than-average volume. Gaps on weekly or monthly charts are rarer.
Types of Gaps:
1. Common Gaps
2. Breakaway Gaps
3. Runaway Gaps
4. Exhaustion Gaps
Gaps that appear frequently on thinly traded stocks may lack significance.
Each gap type carries its own implications for price action and market sentiment. By exploring these gaps in detail, we’ll help you understand how to identify and interpret them, and how they can provide valuable insights into potential market trends. Stay tuned as we break down each gap type, and learn how to incorporate them into your trading strategy for better risk management and decision-making.

17/01/2025

How to Deal With Trading Pressure
Trading in the stock market can be stressful, especially with daily volatility and market unpredictability. Here are a few tips to manage trading pressure effectively:
1. Stick to Your Plan: Emotional decisions often lead to mistakes. Have a clear trading plan with defined entry, exit points, and stop-losses. Stick to it, regardless of short-term market swings.
2. Manage Risk: Never risk more than you can afford to lose. Use proper position sizing and set stop-loss levels to limit potential losses. This helps reduce anxiety during drawdowns.
3. Trade with Patience: The stock market is not a sprint. Avoid the temptation to chase every trend. Focus on long-term growth rather than short-term gains, especially in the Indian market where volatility can create false signals.
4. Stay Informed: Keep up with market news, economic data, and updates related to sectors you’re trading in. Staying informed helps you make rational decisions and reduces pressure.
5. Take Breaks: Constant screen time can heighten stress. Take breaks during the day, especially after a loss or a bad trade, to regain perspective and mental clarity.
By maintaining discipline, managing risk, and staying informed, you can handle the pressures of trading in the Indian stock market with confidence.