Top Shares for Trading in 2021: A Comprehensive Guide
Entering the stock market can be daunting for beginners, but understanding what a share market is is the first step towards making informed decisions. A share market, or stock market, is a platform where securities such as stocks, bonds, and other forms of investment instruments are issued, traded, and bought and sold. In this article, we will explore the top shares for trading in 2021 and provide insights into trading strategies and market trends.
Understanding the Share Market
A share market is a collection of different investment products, including common stocks, preferred stocks, and corporate bonds. When you buy a share, you are essentially purchasing a portion of a company. As a shareholder, you become a part-owner and may have rights such as voting on company policies and receiving dividends. The price of a share is determined by supply and demand in the market.
Top Shares for Trading in 2021
Raymond
Raymond, a leading Indian retail and wholesale conglomerate in the textiles and apparel sector, has recently shown strong upward momentum. Its daily and weekly chart has indicated a trendline breakout, suggesting a potential upward movement towards the 800 level in 2022. Traders should keep a close eye on this stock for potential gains.
KRBL Commodity Stock
KRBL, a commodity stock, has also shown promising trends, with a breakout on both daily and weekly charts. Analysts predict that the share price is expected to reach the 400 level in the next six months. This makes KRBL a compelling option for short to medium-term traders looking for quick returns.
HDFCBank and Reliance
For long-term trading, HDFCBank and Reliance stands out. These blue-chip stocks are known for their consistent performance and high liquidity. Always prefer to trade in blue-chip companies and high-volume stocks as they offer better stability and lower risk. On the other hand, it’s advisable to avoid trading in low-volume stocks and Z-category stocks, which may be more volatile and less liquid.
Trading Strategies and Market Trends
Traders should consider adopting a disciplined approach to trading, focusing on key market trends and economic indicators. Some popular trading strategies include:
Technical Analysis: This involves studying historical price action and chart patterns to predict future movements. Indicators such as moving averages, RSI, and MACD can provide valuable insights. Fundamental Analysis: This approach involves analyzing the underlying economic and financial factors that influence the value of a stock. This includes earnings reports, dividend payouts, and market sentiment. Pattern Recognition: Identifying patterns in historical price data can help predict future movements. Common patterns include head and shoulders, double tops, and triangles.Expert Advice and Services
For comprehensive and expert advice, you can consider subscribing to the services of CapitalVia Investment Advisers. They provide detailed research, market analysis, and personalized investment strategies to help you make informed decisions.
In conclusion, entering the stock market in 2021 requires a deep understanding of share markets and a well-thought-out trading strategy. By focusing on top shares such as Raymond, KRBL, HDFCBank, and Reliance, and leveraging expert advice, you can increase your chances of success in the ever-evolving market environment.