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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 24 terms

Support

Technical analysis

A price zone where buying interest has repeatedly been sufficient to halt declines.

In plain terms

A floor made of memory — people who regret selling there and people who want out at break-even.

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ASBA

Market basics
Also called: Applications Supported by Blocked Amount

Applications Supported by Blocked Amount — the mechanism by which IPO application money is frozen in the applicant's own bank account instead of being transferred to the issuer.

In plain terms

You never send money anywhere. On allotment the block becomes a debit; without allotment it simply lifts, and all you gave up was the ability to spend that amount for a week.

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Dynamic support

Technical analysis

A moving average acting as support, so the level rises or falls with price rather than sitting at a fixed price.

In plain terms

Partly self-fulfilling — enough traders place orders at the 20 or 50-day average that the orders themselves create the support. Self-fulfilling is still real.

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Breakout

Technical analysis

A decisive close beyond an established support or resistance level.

In plain terms

Only credible with a volume surge. Without one it is usually a trap.

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Bubble

Risk & psychology

A period when prices rise far beyond what the underlying economics support.

In plain terms

Built on stories that are genuinely true. The error is the price paid for the story, not the story.

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Confirmation bias

Risk & psychology

Seeking and favouring information that supports an existing belief.

In plain terms

Stock-tip groups are confirmation machines — everyone in them already owns it.

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Ichimoku

Technical analysis
Also called: Ichimoku Kinko Hyo

A Japanese trend system of five lines, including a forward-projected cloud of support and resistance.

In plain terms

Looks like the busiest indicator on the screen and is really one midpoint calculation at four speeds. Above the cloud is up, below is down, inside is no-trade.

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Role reversal

Technical analysis

The tendency of broken resistance to act as support afterwards, and vice versa.

In plain terms

Everyone who sold at ₹400 and watched it run to ₹450 will buy on a return to ₹400.

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Running account settlement

Regulation & tax
Also called: Quarterly settlement of funds, Quarterly settlement

The requirement that a broker return client funds not supporting any position, on dates published in advance, monthly or quarterly by the client’s choice.

In plain terms

The large unexplained debit that turns out to be your own money going back to your bank. Idle cash with a broker is the one balance a broker failure can reach.

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Sandwich generation

Risk & psychology

Earners supporting both parents and children at the same time.

In plain terms

One candle, two rooms. Put the support in the plan as a line item rather than hoping it fits.

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Securitisation

Fundamental analysis
Also called: Securitization

Transferring a pool of loans to a trust which issues pass-through certificates to investors, with the originator retaining a prescribed minimum slice and commonly providing some credit support behind it.

In plain terms

Because the retained slice and the support mean substantially all the risks and rewards have not gone, the loans frequently stay on the balance sheet and the money received is recorded as a borrowing.

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Spring

Technical analysis

In Wyckoff analysis, a brief dip below the support of a range that triggers the stops resting there and is reclaimed within a few sessions.

In plain terms

The one part of the framework that makes a falsifiable, time-bound prediction. If support is not reclaimed quickly, the thesis is dead and you exit without interpreting anything.

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SuperTrend

Technical analysis

An ATR-based trailing indicator that flips between acting as support and resistance.

In plain terms

Very popular with Indian intraday traders. A trend-follower, so it whipsaws in ranges.

Throwback

Technical analysis

Price breaking a channel rail and then returning to it from the other side, so that old support acts as resistance.

In plain terms

Often the cleanest short entry a channel offers, because the invalidation sits just beyond the rail rather than far away.

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Top-up loan

Market basics

Additional borrowing offered on an existing secured loan, typically at or near the same rate, where the security supports it.

In plain terms

The cheapest large borrowing a household can get, which is exactly the danger. Money borrowed for twenty years to fund something consumed in one is not cheap because the rate is low.

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Fixed expenses

Market basics

Costs that recur at a predictable amount each month.

In plain terms

Rent or EMI, fees, utilities, insurance — and for many Indian households, support to parents. Name it and size it rather than treating it as a surprise.

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Gap

Technical analysis

A price range in which no trading occurred, leaving a blank strip between one session and the next.

In plain terms

Nobody holds a position inside a gap, which is exactly why it later acts as support or resistance.

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Goal conflict

Risk & psychology

Two financial goals competing for the same money.

In plain terms

Supporting parents competes directly with retirement. Better decided at thirty-five than fifty-five.

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Kumo

Technical analysis
Also called: Ichimoku cloud

The Ichimoku cloud — the shaded area between Senkou Span A and Span B, plotted twenty-six bars ahead.

In plain terms

The only common indicator that draws part of itself into the future, so today’s chart shows where support will sit next month.

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Option chain

Derivatives

The strike-by-strike table of open interest, change in open interest, volume and implied volatility for an underlying's options, published live and free by the NSE.

In plain terms

The strike with the largest call open interest often acts as resistance and the largest put strike as support, because writers hedging those positions generate real buying and selling. One source of confluence, not a forecast.

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Path to profitability

Fundamental analysis

The route by which a loss-making company is expected to reach profit, judged as two questions in order: does one customer make money, and can total contribution ever cover the fixed cost base?

In plain terms

A company can pass the first test and fail the second permanently. Positive unit economics with a cost base the addressable market cannot support is what catches people who stopped checking after the first question.

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Rising three methods

Technical analysis
Also called: Falling three methods

A continuation pattern: a long trend candle, then two to four small candles drifting back inside its range on lighter volume, then another long candle closing beyond the first one’s extreme.

In plain terms

The picture of a healthy pullback — shallow, unhurried and unsupported by volume, meaning nobody is willing to sell in size. The falling three methods is the same structure inside a downtrend.

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Sensitivity analysis

Fundamental analysis

Re-running a valuation across a range of growth and discount-rate assumptions to see how far the answer moves.

In plain terms

The output is a spread rather than a figure, and the spread is the honest answer. A DCF quoted to the rupee is a claim the model cannot support.

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Sum assured

Market basics

The amount an insurer pays on a valid claim.

In plain terms

The number that actually matters on a policy. If it would not support your family for years, the policy is not doing its job.

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Indian stock market glossary · Market Vidyalaya