Tickertape – Best Financial Stock Analyzer for Smart Investment
- 22 July 2020 | 1058 Views | By Abhinav Mishra
No matter how experienced you are at stock investing and trading, having a platform which provides a detailed analysis of stocks is an added advantage. In this article, we are going to talk about one such platform which aims to make investor’s journey smooth.
What is a tickertape?
Tickertape is a device that shows prices, symbols, and numbers to convey information about stocks and indices. In other words, ticker-tape provides a detailed snapshot of financial information. You would have seen ticker-tape on a business TV channel or on a stock exchange building.
Following the definition of ticker-tape, there is a platform that aims to provide complete stock information to its users – Tickertape.
How do you use Tickertape?
Tickertape is a content and information platform for ETFs, stocks, and other investment instruments. The Company is a Research Analyst registered with SEBI under SEBI (Research Analyst) Regulations, 2014.
Read more about stock markets here:
The platform offers some very interesting tools to its user.
Tool 1 – MMI
What is MMI in the stock market?
MMI stands for Market Mood Index and it indicates the market/investors’ sentiment and has four emotional zones: greed, extreme greed, fear, and extreme fear. Looking at the market sentiment and analyzing historical data help you strategize your entry and exit times. The ticker-tape indicator is set between 0 and 100 to understand the market sentiment.
Extreme fear – If the MMI value is less than 30, the market is in extreme fear and if it reduces to 20, it is a good time to enter and open fresh positions as the market is oversold and might turn upwards.
Fear – If the MMI value is between 30 and 50, it suggests that investors are fearful in the market. Your action should depend on MMI trajectory, if MMI is in fear coming from Greed then, you should probably wait for it to reach Extreme Fear and then wait for the market to change directions. If MMI is coming from extreme fear, it means the fear is reducing in the market and it is a good time to enter.
Greed – If the MMI value is between 50 and 70, it suggests that investors are acting greedy in the market. If MMI is coming from Neutral towards the Greed zone, it means greed is increasing in the market and investors should be cautious in opening new positions. However, if MMI is dropping from Extreme Greed, it means greed is reducing in the market and you should have more patience before looking for fresh opportunities.
Extreme Greed – MMI value over 70 put the market in Extreme greed and over 80 in high extreme greed. You should not start any fresh investment in such a time as the market is likely to go down from the current levels.
How is the MMI built?
The MMI takes into account 6 important factors to give a complete picture of emotions driving the market.
FII Activity – This is the net open interest of FIIs in Index Futures on the NSE.
Volatility and Skew – Volatility is measured by the India VIX index.
Momentum – It is the difference between 90D and 30D exponential moving averages of Nifty.
Market Breadth – It is calculated by dividing AD ration by AD volume.
Price Strength – It is calculated by subtracting % of stocks near their 52W low from % of stocks near their 52W high to arrive at the net % of stocks near their 52W high.
Demand for Gold – It is the relative price return of Nifty 50 vs Gold for the last 2 weeks.
Which is the best stock screener?
Tool 2 – Stock screener
It is a tool that traders and investors can use to filter stocks on user-defined metrics. Tickertape screener is simple, easy to use, and customizable. There is a readymade screen which helps you filter stocks based on various parameters such as income, financial ratio, market cap, sector, 50 lows, quick cash conversions and close price, you can also create your screen using over 130 filters. This makes Tickertape a very efficient tool for investors.
The screener has important filter criteria of the P/E ratio. You can check for companies with LOW, MID, and HIGH P/E ratios. The low is below 20, mid is between 20 and 45, and high is above 45.
What is the PE ratio in stock?
The price to earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. To determine the P/E ratio, you need to divide the current stock price of the company by the earning per share.
What is a good PE ratio?
Different industries have different P/E ratio ranges that can be considered normal for their industry group. A higher P/E ratio shows that investors are willing to pay a higher price for a share because of expectations in the future. At the index level, P/E of 25 is an ideal one. If the index moves beyond this number, the market is considered to be over-valued. In the case of FMCG, the P/E in the range for 50-60 is considered good. An important thing to note is that you should not rely just on the P/E ratio before investing.
Tool 3 – Stock Page
Once you have customized your screener to sort the stocks as per the parameters of your choice, you can get more detail about the stock on the Stock page. You can study and assess the stock with exhaustive information about a stock based on analyst’ buy rating, key drivers, and other areas that are important for you. You will get everything you need to study the company – price chart, company profile, peers, financial trends and forecast, and rating.
Is this a good time to buy stocks?
MMI value, P/E ratio, and your analyses of the stock help you decide if it a good time to buy a particular stock or not. While popular investment gurus such as Benjamin Graham and Warren Buffett have denied stock price being linked to the timing, the time to buy stock depends on several measures, such as:
- Price of the stock.
- Comparison with its peers.
- Overall trend int the stock exchange, etc.
Hence, when focussed on buying a particular stock, one must consider the above factors, before going deep to analyze the timing to buy a stock.
Is a higher EPS good or bad?
EPS or earning per share is widely considered to be the best measure of a share’s true price. It tells how much of a company’s profit after tax that each shareholder owns. There is no rule-of-thumb figure that is considered a good or bad EPS, although the higher the figure the better. You can check the EPS of the company on the Stock page under the Financial section.
Important/Distinguishing parameters of Tickertape’s stock page are:
Intrinsic value is the anticipated or calculated value of a company or stock determined through fundamental analysis. It includes intangible and tangible factors. Intrinsic value is also called the real value and may or may not be the same as the current market value. The stock page tells if the current price is less or more than intrinsic value.
How do you find the intrinsic value of a stock?
As the name suggests, intrinsic value refers to the value of the stock, based upon the financials of the underlying Company. It eliminates the fluctuations in the price of stock that are caused due to overall market scenario.
Intrinsic value depends on the net cash flow generation by the Company, along with how much profit is generated from its operating activity.
Returns vs FD rates
This section tells the return of the stock over the years when compared to Fixed Deposit.
This section tells if the stock is providing an attractive dividend or not. If the indicator is positive (green) it indicates the company is in good health.
It tells whether to invest in stock or not at the current level.
No Red Flags
This section tells if the stock is in ASM/GSM list and if promoter holding is pledged or not.
Tool 4 – Learning
This tool provides all the information related to stock investing. As a beginner you can learn using this tool or if you already know the topics you can brush up. It has content related to Elementary Economics, Equity Markets, Investing in portfolios, and evaluating stocks.
Using the platform
If you have your trading account with brokers like 5paise, AxisDirect, Kotak Sec, Trustline, Zerodha, etc, you can log in via them. Or you can log in via Google or Facebook Account.
The platform has a paid version which offers you additional information about the stock and the market.
The benefits with Tickertape Pro are:
- You get access to future estimates like earnings and revenue
- You can check buy rating with a potential upside of the stocks
- Exclusive filters to rank stocks on various parameters
- Sector metrics to check relative valuation
- You will have access to premium ideas and stock screens
- You can also save unlimited screens
- You can take stock data offline for further analysis
- You also get priority support
You also get access to premium screens like Lifestyle Leaders, Futures and Options Long and Short Build Up Screens, etc. which help you find your next great investments with ease.
The Tickertape Pro comes with 14 days of free trial. If you like the services, you can continue using it or cancel anytime within the trial period if you don’t like the services. There are four plans you can choose from:
Once for 12 months @ Rs 1133
Once for 6 months @ Rs 637
Once for 3 months @ Rs 336
Every month @ Rs 118
Paying for a plan
Payment for Tickertape Pro can be done via Debit/Credit card, Zerodha funds, Netbanking, and UPI. If you are on the monthly subscription plan, you cannot change your payment method on the go. You can, however, end your plan and restart it with your choice of payment method again
Overall, it is a great platform for an investor starting their journey in investment and trading. You will have pretty much everything you need on Tickertape.