Parth Shrivastava

The graph below is of Nifty 50 and it's PE ratio since 2000. The graph in blue is PE ratio and the graph in green is Nifty movement over the period. The first band (in blue) shows the 85th percentile of PE ratio and the band below shows (in orange) shoes the 15th percentile of PE ratio for NIFTY 50. There is clearly a trend being followed here, whenever the PE Ratio graph crosses the upper band, consider it as a sell recommendation and whenever we are going below the second band, consider it as a Buy recommendation. Timing the market using this strategy gives the following insight- Period 1-Sell- Nifty fell by 33.06% Period 2-Buy-Nifty rose by 454.10% Period 3-Sell-Nifty fell by 53% Period 4-Buy-Nifty rose by 108.60% Period 5-Sell-Nifty fell by 9.06% Period 6-Buy-Nifty rose by 89.69% Following this, the CAGR for period comes out to be 18.71% compared to Nifty delivering 11.07%. How practical is this? can the same be true for other indexes?..what are your thoughts? special thanks to Raman Jee Sharma for inspiration. #financialresearch #quantitativeinsights

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Core Analysis Method: Smart Money Concepts 😇7 Dimension Analysis Time Frame: H1/M5 1: Swing Structure: Bearish with proper BOS after taking inducement and marking valid low. The price completed its corrective swing move with 4 pullbacks and a proper internal bullish structure, mitigating the extreme POI OB and sweeping swing liquidity in the Premier zone. It also swept external swing liquidity, making this entry more interesting with the Whale scoop entry setup. Resistance: Supply area acts strong with a false breakout. Post-break buildup failed strongly, indicating that the price will go further down to form another low. 2: Pattern 🟢 CHART PATTERNS: Reversal: Rounding bearish patterns and consolidation rectangle bear side breakout. Shakeout reversal also at the same point. 🟢 CANDLE PATTERNS: Multiple long wick candles at the POI area, then breakout the range with a momentum strict engulfing pattern. 3: Volume 🟢 Shows very good volume at the resistance level, but this volume is unable to break the resistance, so we consider it an execution volume at the point. 4: Momentum RSI 🟢 Since the start of July, momentum has been in the bearish zone with multiple bearish range shifts and divergence, everything loudly indicating this is still in the bearish phase. 5: Volatility Bollinger Bands 🟢 Expansion has started just with momentum. Bearish headfake also indicates bearish volatility in this pair for now. 6: Strength: Showing weakness. 7: Sentiment: Everything is in bearish favor. ✔️ Entry Time Frame: M5 ✅ Entry TF Structure: Bearish ☑️ Trend line breakout: Yes 💡 Decision: Sell 🚀 Entry: 0.8424 ✋ Stop Loss: 0.8436 🎯 Take Profit: 0.8363 😊 Risk to Reward Ratio: 5RR 🕛 Expected Duration: 3 Days SUMMARY: Analysis supports a strong sell position based on the Smart Money Concepts methodology, with expected bearish momentum and high potential reward.

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Day 77 of learning 100 option strategy in 100 days: Ratio Put Spread: Definition: Buy a certain number of put options and sell a larger number of lower strike put options to reduce cost. Example with Bank Nifty: 1. Setup: - Buy 1 Bank Nifty put option at a higher strike price (e.g., 45000). - Sell 2 Bank Nifty put options at a lower strike price (e.g., 44000) 2. Objective: Profit from a moderate decline in Bank Nifty price, with reduced upfront cost. 3. Outcome: - If Bank Nifty falls moderately, you can profit. - If Bank Nifty falls significantly, losses can be substantial due to the larger number of sold puts. follow: Faizan Khan🇮🇳

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160 Days of Hedge Available below intrinsic value! Current market observation:(Time stamp: 14:15, 19Jul24) Nifty: Trading at 24,580 Put Option Strike 26,000 December Expiry: Priced at 1,236 (below intrinsic value by ~180) Key details: Open Interest: Exceeds 310,000 Volume (as of 14:15): 75,650 #InvestmentStrategy #MarketOpportunities #Hedging #Nifty #OptionsTrading

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Thought of doing some meme coin trading for the first time on Sol, ended up getting usdt in phantom. Now I'm stuck with usdt that I can't swap because I don't have Sol for the gas -_- Silly mistake, I agree, but still there should be a simpler way to trade/ invest in meme coins with multi chain support. VapourEx will solve that problem soon Follow and stay tuned for more updates on this interesting project.

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📍𝐂𝐅𝐀 𝐋𝐞𝐯𝐞𝐥 1 Aug 2024: - 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 Pass Rate Slips to 44%, Still Above Historic Average... Institute says candidates with at least one deferral had a 29% pass rate. First-time testers had a pass rate of 52%, above the decade average. 𝐍𝐨 𝐨𝐟 𝐒𝐭𝐮𝐝𝐞𝐧𝐭𝐬 𝐀𝐩𝐩𝐞𝐚𝐫𝐞𝐝: 24,943 This is higher compared to Feb and May 2024 Number of Students passed: 11,050 (44% pass rate) 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐏𝐚𝐬𝐬 𝐒𝐜𝐨𝐫𝐞: CFA Level-1 Aug 2024 67%-69% CFA Level-1 May 2024 69% -70% 𝐅𝐨𝐫 90% 𝐌𝐚𝐫𝐤 𝐒𝐜𝐨𝐫𝐞: CFA Level-1 Aug 2024 - 82% -84% CFA Level-1 May 2024 - 82% -83% • Number of Candidates who failed the Aug 2024 exam is quite less compared to Feb and May 2024 • Big reason for pass rate hike is rise in deferral for underprepared students to further dates. • Increase in number of students appearing for CFA Level-1 because most of the students deferred from May 2024 Advice for those who passed CFA LEVEL-1 "Congratulations on passing CFA Level 1! Keep up the momentum. Stay focused, continue studying diligently for Level 2, and maintain a balance between preparation and personal well-being". Advice for those who failed CFA LEVEL-1 "Don't be discouraged by failure. Reflect on weaknesses, study smarter, and persevere. Use it as motivation to improve and approach the exam with renewed determination and preparation". Source: Bloomberg CFA Institute Corporate Finance Institute® (CFI) --- Follow me for more like this... Jeetain Kumar, FMVA® #finance #cfa #investment #hiring #success #analysis

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Difference between "Buy side and Sell side" equity research analyst : Buy Side Research Analyst: ● Buy side analyst maintain confidentiality for firms research work which also called "In-house research". ● This reports are not available publicly ● They works for investment firms like mutual funds, hedge funds, pension funds. ● Provide recommendations to their firm to decide which stocks to buy, hold, or sell. ● Focuses on finding good investment opportunities for their firm. Sell Side Research Analyst: ● This reports are available for public to make their investment decisions ● They works for brokerage firms or investment banks to earn brokerage income. ● Analyzes and writes reports on companies and provides stock recommendations (buy, sell, hold) to clients. ● Their goal is to help clients make informed decisions about which stocks to invest in. Parth Verma The Valuation School #research #equity #investment #stocks #researchanalyst

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Path-dependent derivatives are a unique class of options where the payoff is explicitly tied to the entire price path of the underlying asset, not just the final price at expiry. Here are some common types of such derivatives - 1. Lookback Options ✔️ Payoff: These options base their payoff on the maximum or minimum price reached by the underlying asset during their lifetime. ✔️ Example: A "lookback call with a strike price of $100" gives the holder the right, but not the obligation, to buy the asset at $100 at expiry. However, the payoff is determined by the difference between the highest price the asset reached during the option's life and the strike price ($100). So, if the highest price reached was $120, the payoff would be $20 ($120 - $100). 2. Asian Options ✔️ Payoff: These options base their payoff on the average price of the underlying asset over a specified period within the option's life. There are variations like arithmetic average or geometric average. ✔️ Example: An "Asian call with a strike price of $50" has a payoff based on the average closing price of the stock over the past 30 days. If the average closing price during that period is $55, the payoff would be $5 ($55 average - $50 strike). 3. Barrier Options (Knock-In/Knock-Out) ✔️ Payoff: While not all barrier options are purely path-dependent, some are. These options are activated (knock-in) or deactivated (knock-out) if the underlying asset price reaches a specific barrier level during the option's life. The payoff then depends on the standard call or put option structure after the barrier is triggered. ✔️ Example (Knock-Out Call): A "knock-out call with a strike price of $40 and a barrier of $35" allows the holder to buy the asset at $40 at expiry, but only if the price never falls below $35 during the option's life. If the price touches $35 at any point, the option becomes worthless. 4. Double Barrier Options ✔️ Payoff: These options build on the concept of barrier options by having two barrier levels. The payoff is only triggered if the price stays within a specific range throughout the option's life. ✔️ Example: A "double barrier call with a strike price of $60, an upper barrier of $70, and a lower barrier of $50" allows the holder to buy the asset at $60 at expiry, but only if the price stays between $50 and $70 for the entire duration of the option. 5. Rainbow Options ✔️ Payoff: These complex options involve a basket of underlying assets and multiple strike prices. The payoff is determined based on the performance of the worst-performing asset in the basket relative to its corresponding strike price. ✔️ Example: A Rainbow Put on a basket of three stocks might have three strike prices (one for each stock). The payoff would be based on the difference between the strike price of the stock with the lowest ending price and its actual ending price at expiry. Kickstart your Quant Interview Prep Check out Quant Insider Stack - https://lnkd.in/gcfdUEfg

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📈 𝐑𝐁𝐈 𝐌𝐏𝐂 𝐌𝐞𝐞𝐭𝐢𝐧𝐠 𝐒𝐮𝐦𝐦𝐚𝐫𝐲 📉 🚀 𝐑𝐞𝐩𝐨 𝐑𝐚𝐭𝐞: Kept unchanged at 6.50% 🔒 𝐌𝐒𝐅: 6.75% | 𝐒𝐃𝐅: 6.25% 🗳️ 𝐕𝐨𝐭𝐞: 4-2 majority 💡 𝐒𝐭𝐚𝐧𝐜𝐞: 'Withdrawal of accommodation' retained. 📉 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧: Targeting CPI at 4% 🔮 FY25 CPI: 4.5% (up from 4.5%). 📊 𝐆𝐃𝐏 𝐆𝐫𝐨𝐰𝐭𝐡: Stable at 7.2%. 🌍 𝐆𝐥𝐨𝐛𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: Volatile, but India’s financial sector is resilient. 🔗 Stay tuned for more such updates & contents and let’s discuss the impact on comment section! 💬 #linkedin #linkedinpost #finance #rbi #monetarypolicy #finance #cfa #researchanalyst #nism #financialmarkets #india #linkedinconnections

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Few of my clients redeem their investments in quant mutual funds and many of others sell their holdings and switch from Groww to some other broker app. I will be discussing my perspective regarding what all happened in few days: — Front running case that happened in quant amc creates panic among investors, but that same already happened with axis, nippon and hdfc once. So just to assure you this is not some scam related to your money, insider trading and all this happens everywhere. Now If everything is true then fund manager will change, so don’t create a theory that mutual funds are bad scheme no it’s nothing like that, If possible switch to index investing there is simple investing approach and not much requirement of fund manager. — Groww fraud is completely wrong, to save yourself from these type of frauds you can take precautions like direct buying from AMC website this will atleast help you to get details if your money got invested or not. This is the most reliable way to invest in MFs so please do consider this. I always say no one’s gonna protect your hard earned money be it government or any authority, so please be aware when it comes to money, take full charge of your finance and always track every single penny. #stockmarket #financialplanning #investmentmanagement

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#14 7 principles, I learned about swing trading (in order of priority) in last 2 years. P.S. Struggling to build discipline with these. Still feels like Day 0 when I disrespect any of them 1. Good Technical Setup 2. Good Fundamentals 3. 5% capital in one stock 4. Hold Till Targets are met - play the full cycle. You never know which days will bring the gains. 5. Maintain Google Tracker - don't open trading terminal everyday. The less you open it, the more money you make. 6. Downward Average by 2.5% capital - when a stock falls 10% below your last purchase price. Don't go beyond 10% capital in one stock at any point in time. 7. Don't sell a stock at a loss. If you are confident of your stocks, it's a good idea to avoid Stoploss (especially in a rising market)

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Technical Analysis? Overrated. Fundamental Analysis? Outdated. All you need is the Prafull Billore Posting Pattern. Prafull posts. Stock dips. Investors panic. I don’t trust candlesticks, moving averages, or Fibonacci retracements. I trust the Prafull Indicator — because when he posts, markets toast. 🔥📉 #MarketAnalysis #Trends

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GFG160 Day 8: Today's problem: Given an array prices[] of length n, representing the prices of the stocks on different days. The task is to find the maximum profit possible by buying and selling the stocks on different days when at most one transaction is allowed. Here one transaction means 1 buy + 1 Sell. If it is not possible to make a profit then return 0. Note: Stock must be bought before being sold. #gfg160 #geekstreak2024 #DrGViswanathan #100daysofcode #VITBhopal #VITBhopalLions GeeksforGeeks

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Some observation on ZIRP era to highest interest rates in 2 decades What is ZIRP = Zero interest rate policy, meaning keeping the interest rate near to zero Let’s take example of a tech company like Apple. These companies preserve cash during ZIRP era and go conservative during high interest rates. Apple’s non-current liabilities as of September 30, 2019 was $142.3 billion and as of March 30, 2024 is $139 billion. On the other hand the cash balance as of September 30, 2019 was close to $100 billion but as of March 30, 2024 is $67 billion. Means debt is around same level but company burned through a lot of cash. Companies in ZIRP era used to preserve cash and preferred debt to undertake new projects as it was dirt cheap. As these interest rates will come down, companies will be in position to preserve cash and take on more cheap debt to start on projects. #ShareMarket #Fed #RBI

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Impulsive trading❌❌❌❌ Compulsive trading ✅✅✅ Fast and Furious movement shouldn’t let you be impulsive but adjust accordingly within defined parameters. Compulsive trading(as a profession)gives psychological edge to not feel like idle one. People say avoid over trading, I say avoid impulsive trading. People say note down your mistake, I say note what actions you take. People say it's risky and tough, I say life is adventurous enough. People say trading's frustrating,it seems I say it's more than just broken dreams People say be cautious and slow, I say let your passion show. People say it's just a gamble, no more, I say it's a skill to explore. People say the market's a test, I say trade with your best interest. People say follow the crowd's quest, I say carve your path, invest. #stockmarket #stocks #investing #trading #investment #money #finance #forex #invest #nifty #investor #business #sharemarket #financialfreedom #bitcoin #trader #cryptocurrency #entrepreneur #sensex #daytrader #stock #wallstreet #wealth #nse #forextrader #bse #stockmarketindia #daytrading #stockmarketnews #forextrading #crypto #success #motivation #stockmarketinvesting #indianstockmarket #technicalanalysis #intraday #stocktrading #swingtrading #banknifty #millionaire #trade #profit #forexsignals #intradaytrading #investingtips #india #investors #stockmarkets #investments #market #niftyfifty #passiveincome #binaryoptions #financialliteracy #warrenbuffet #blockchain #dalalstreet #entrepreneurship #optionstrading

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🔻 Market Crash: Sensex Tanks by 2.27%, ₹13 Lakh Crore Wealth Lost in Two Days 🔻 The recent market downturn, which erased ₹13 lakh crore in investor wealth, provides a valuable lesson in understanding market dynamics and risk management. For finance students and professionals, here are some key insights: 1️⃣ Sensitivity to Macroeconomic and Global Factors The 2.27% drop in the Sensex underscores the market’s sensitivity to factors like: - Global Trends: Shifts in the worldwide economy, especially in major economies, ripple into our markets. - Domestic Indicators: Economic data on inflation, interest rates, or GDP growth impacts investor confidence. - Geopolitical Tensions: Global political events often amplify market uncertainty. Understanding these factors is essential for anticipating and managing risks during volatile times. 2️⃣ Importance of Risk Management - Diversification: Spreading investments across sectors helps reduce risk. Defensive sectors (like healthcare) can offer more stability. - Stop-Loss Orders: Automatically selling stocks at set prices minimizes losses during rapid declines. - Hedging with Derivatives: Options and futures can protect against extreme market movements. 3️⃣ Behavioral Finance in Real Life Behavioural finance explains how panic selling and loss aversion often drive markets during downturns. Emotions can lead to rushed decisions, intensifying sell-offs. Recognizing these biases can help investors make rational choices even in turbulent times. 4️⃣ Sectoral Resilience Some sectors respond better than others in a downturn. Defensive sectors like utilities or essential consumer goods tend to be less volatile, while high-growth areas like tech may see sharper declines. Understanding sectoral dynamics is key to building resilient portfolios. 💡 In Summary: Market cycles are natural, and downturns bring essential lessons in resilience and strategy. This is a real-world case study for finance students in risk management, portfolio diversification, and emotional discipline. Long-term success often means staying informed, managing risk, and seizing opportunities when the market stabilizes. #MarketCrash #Finance #RiskManagement #Sensex #Investing #MBA

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Here’s a simplified, step-by-step approach to how **gamma scalping** works effectively: 1. **Set Up a Delta-Neutral Position**: Buy both call and put options at the same strike price, aiming to balance the delta of each option. This way, the combined position is not affected by small price changes in the underlying asset. 2. **Monitor Price Movements**: As the underlying asset's price moves, the option's delta changes. This is where **gamma** comes into play: it shows how much delta will shift with price moves. 3. **Adjust by Hedging**: If the price moves up, sell shares of the underlying asset. If it moves down, buy shares to keep the position delta-neutral. This "scalping" or adjusting locks in small profits from each price fluctuation. 4. **Capture Profits Over Time**: Repeat these adjustments as the price fluctuates. Each adjustment aims to capture small profits that add up, ideally enough to offset any losses from time decay (theta) in the options. 5. **Close the Position**: When the underlying asset’s volatility decreases, or your profit target is met, you can close out the position. ### Key Points - **Gamma scalping works best in volatile markets**, where prices move frequently. - **Frequent adjustments** are necessary to capture small profits from each price movement. - This strategy aims to profit from **volatility** rather than directional price moves. This approach works well when markets are moving up and down within a range, providing enough movement to lock in gains frequently.

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*** Interview Prep *** Demystifying Fees 👉 Management Fee - Mutual Funds and Hedge Funds: Management fees typically range from 0.5% to 2% of AUM, also referred to as Gross NAV. The fee remains flat throughout the tenure of the fund and reflects the costs of active portfolio management and operational expenses. Private Equity and Private Credit Funds: - Management fees are based on Committed Capital during the investment phase, unlike Mutual Funds and Hedge Funds that charge fees on AUM. - Fee Structure Over Time: During the investment phase (first 4-5 years), fees are typically 1.5% to 2% of committed capital. After the investment phase, fees reduce to 1% to 1.5% of invested capital, reflecting the shift in workload to monitoring investments and planning exits. Why the Difference? Mutual Funds and Hedge Funds are liquid investments with immediate market exposure, while Private Equity and Private Credit involve illiquid assets, requiring significant upfront due diligence and capital deployment over time. 👉 Performance Fee Mutual Funds: Performance fees are generally not charged, as these funds cater to retail investors and rely on management fees alone. Hedge Funds: Hedge funds often charge 20% performance fees on profits exceeding a hurdle rate (minimum target return). The hurdle rate is typically tied to a benchmark such as LIBOR, SOFR, or a specific return threshold. Private Equity and Private Credit Funds: While there is no "performance fee" in the traditional sense, similar concepts like GP Catch-Up and Carried Interest reward fund managers based on fund performance. 👉 Catch-Up and Carried Interest Catch-Up and Carried Interest are mechanisms to reward General Partners (GPs) after meeting predefined thresholds, following the Waterfall Distribution model: Return of Capital: LPs receive the full return of their invested capital first. Hurdle Rate (Preferred Return): LPs receive a minimum return (e.g., 8%) on their capital before the GP is entitled to profits. GP Catch-Up: Once the hurdle rate is met, the GP may receive 100% of profits until their share reaches 20% of total profits (preferred return + GP catch-up). Profit Split: After the catch-up, remaining profits are distributed in an 80/20 ratio (80% to LPs, 20% to GPs). 👉 Why is Carried Interest Not a Fee? Not Guaranteed: Carried interest is contingent on the fund’s performance and is earned only if returns exceed the hurdle rate. Tax Advantage: Unlike fees (ordinary income), carried interest is often taxed as long-term capital gains, provided conditions such as holding periods (e.g., three years under U.S. law) are met. 👉 Global Tax Treatment: U.S.: Carried interest is treated as capital gains under the 2017 Tax Cuts and Jobs Act, requiring a minimum three-year holding period to qualify. EU: Tax treatment varies, often a mix of capital gains and earned income. India and China: Carried interest is typically treated as ordinary income, taxed at higher rates.

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