Book 50 % Profit in Sterlite

Sterlite has moved up - its time to take some money off the table for weekend .

Now the stop should be at 760.

 

 

 

Have fun and learn the art of swing trading.

 

Will welcome your feed back comments

Big Brother has Rallied - we will also catch up

Big Brother- Dow Jones rallied last night on the back of good GDP data though home sell figures are still a concern . The rally by big brother may see a strong rally in Asian markets too.

Our yesterday ideas Sterlite and Ranbaxy Lab are expected to do well today - book profit by the end of the day so that you may spend it on weekend which is going to be an extended one.

Today ideas are Hindalco with support of 115 and resistance at 140-144. Crude is coming back and good GDP number from USA, and a weak Dollar may see it going up therefore, as a crude proxy one can think of Cairn with stop at 260 and resistance at 290-296 .

Realty sector is a high beta sector and was butchered during these down days . Its a very short term play Ajmera Realty has support at 240 and resistance at 290- 315.

We have been telling our readers that when panic sets in - one should buy good stocks.
We for one never forget the old street saying " Be fearful when others are greedy and be greedy when others are fearful"
We have been greedy and this weekend we intend to indulge on some shopping spree after booking profits.
Wishing you a nice weekend ahead.

Sterlite turns back

Sterlite is making a double bottom on chart ,  it has resumed its uptrend, support is at 709 and target could be 800-830-860

Trailing stop for ranbaxy lab is 375

Today Ranbaxy Lab  buy price was triggered and stock is moving up . One should keep a stop of 375 now.

 

Punj Lyod and Ambuja Cement

Punj Lyod has been hammered a lot . Now the risk seems limited .Its trading above 200 DMA

It has support at 195  and resistance it at 236 and 280

 

Similarly Ambuja Cement is trading just above 200 DMA

Where do we go from here ???

The panic has set in and these panic offer buying opportunity . One should be doing some cherry picking with small quantity.

 

Companies with domestic focus growth story  like ITC, Dabur, Tata Chemical, Hero Honda, Bajaj Auto , JP Associate   will remain on our radar .

 

Ranbaxy Lab is a buy above 385 with stop of 360 for  a  possible target of 415

Uco bank is turning up

 

 

UCO Bank is turning up after taking support at 50 DMA . It has support at 50 and resistances at 57-61.

 

 From todays ideas only one stock Mcleod Russel hit the buy triggger price and it is performing well  support is at 197

Some great opportunity at this fall

Well, a few days back everybody thought that this market would not fall and now everyone has become so fearful as if this market would never rise. This is the same game of fear and greed .

Nifty is still in uptrend and is going through correction phase. It may witness some volatility and it has got major support near 4700-4750 zone.
This correction once it gets over would throw many opportunity to buy those stocks which would see momentum again.

Mcleod Russel above 207 with stop of 195 , target -236-280 , Cairn above 278 with stop of 266 for target 290-300 and BHEL above 2370 with stop of 2300 and target of 2500 are ideas for the day.One has to keep in mind that markets are in short term downtrend trade with small quantity and buy only above the price mentioned.

I would also look for IVRCL, JP Associate, Cairn , Polaris and Union Bank as investment opportunity when market falls more from here.

Markets are choppy

We are witnessing lots of volatility and whipsaws. There are signs of exhaustion and some of the stocks are punished on the basis of quarterly results.

How do we trade in this market? Keep volume low and do not buy breakouts , wait for the signs of strength.

Let us take an example of Escorts. You can see on the adjoining chart that after breaking out of the range of 105-109 with good volume it touched a new high and corrected with five down days. It made a high of 118.50 today. How do we trade this stock. If tomorrow it is able to trade above 119 then only it will show us strength
Today it has taken support at 20 DMA and oscillator are at oversold level and any uptick will see it turning up.

Escorts may resume its uptrend only when it trades above 119 with support of 108 with possible target of 133-150.

Buy on dips: This weeks Ideas

Markets are expected to bounce back .
Here are some swing trading ideas. Fiance sector looks strong on charts.

IDBI - Support 124, target 150

IDFC - Support 150, target 180
BOB - Support 485 target 560


Ivrcl - Support 380, target 430

Gwalior Chemical - Support 97, target 114-120

Jubilant Organic - Support 260, target 265

Louise Yamadas view on Gold

Louise Yamada the author of MARKET MAGIC, published by John Wiley & Sons, which was released in March 1998 and reviewed as "a monumental book, one that all serious and professional investors should read.
She shares her view on Gold, Dollar Movements and market related issues

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2009/10/23_Louise_Yamada.html


Hope you all had a nice weekend.

PTC has similar pattern as we saw in Federal Bank a few days before

PTC has started moving up after six downdays , seems to be a low risk trade with stop at 95 and a possible target of 110

Buy on Dip

Markets all over the Globe seems to be on strong wicket and more money is being pumped into the riskier assets. One thing for now is sure its not a market to short its a buy on dip market.

Realty sector was beaten down yesterday and this being a high beta sector is expected to see a bounce back today.Some of the ideas are mentioned below with the caveat that I do not trade intraday because serious money is made only when one takes positional calls . We discuss the stocks to see how the swing trading ideas perform as per the chart patterns

DLF: Support - 435, target-490


Cipla: Support-280, target- 300

Yes Bank: Support -229, target- 277-300

Pidilite Industries: Support -155, target -181

FMCG sector is buzzing and Marico LTd is trading at new highs with heavy volume. I personally like to trade in those stocks which trade at new high as it is sign of strength.
Marico Ltd has support at 95 and target could be 130.

Trading Ideas for the day

Crude Oil had bounced back and global markets have downdays yesterday and we are seeing some valuation concerns at higher levels.

 

Dollar  may bounce back for the short term

Cairn is a proxy crude play.

 

Cairn : Support 269, resistance 295-300

Torrent Power  : Support 280, resistance 350

Nucleous Software  : Support 150, resistance 131-146

Opto Circuit  : Support 205, resistance 245

Is U.S.A an empire in decline ???

Niall Ferguson, MA, D.Phil., is Laurence A. Tisch Professor of History at Harvard University and William Ziegler Professor of Business Administration at Harvard Business School. He is also a Senior Research Fellow at Jesus College, Oxford University, and a Senior Fellow at the Hoover Institution, Stanford University.


According to him the U.S. is an empire in decline,
"People have predicted the end of America in the past and been wrong," Ferguson concedes. "But let's face it: If you're trying to borrow $9 trillion to save your financial system...and already half your public debt held by foreigners, it's not really the conduct of rising empires, is it?"

Given its massive deficits and overseas military adventures, America today is similar to the Spanish Empire in the 17th century and Britain's in the 20th, he says. "Excessive debt is usually a predictor of subsequent trouble."

OK... Here's some more Niall Ferguson... Ferguson dismisses the dollar loyalists, citing the British pound -the last international reserve currency - as his example. "These things don't last forever" but don't expect it to happen overnight. "It's a long multi-decade process," he states. Even with the dollar near a 14-month low against the Euro, he claims it's not without historical precedence for the greenback to lose "another 20%" this year.

For international investors the loss is enough to offset this year's stock market gains. Not exactly great motivation for foreigners to keep buying the almighty dollar."

Book Partial Profit In HCL Tech and Tata Power

 

Book 50 %  Profit In HCL Tech and Tata Power.

Realty sector is buzzing .Keep India Bull Real Estate on your radar it may move above 298 which is a recent top and support is at 285.

 

 

Keep trailing stop of 1390 for Tata Power

Tata Power ;  one of our morning ideas has moved up.

 

 

Keep trailing stop of 1390 for Tata Power.

 

 

Trading Ideas - buy on Dips , keep Power Sector on your radar

Today we may see a dip in the markets and these dips should be used to go long. Power sector is buzzing and so are the some small IT stocks.
Today's ideas are

Graphite India - support- 63 target- 80
Tata Power support- 1370 target -1518

Another side of the story

Another Stock Market Bubble?
One should always read about the opposite views also. you can read this article by clicking on the link given below:

beta.thehindu.com/opinion/op-ed/article19895.ece#

My Comments: We as a trader look at the trend as long as trend is up and market is taking supports at key levels we remain long. There is no sign of trend reversal yet.If Nifty is not able to trade above 4920-4950 then only we may assume that the uptrend is reversed.Till then its buy on dip market.

HCL Tech

HCL Tech is moving up after consolidation. Support is at 300 and resistance is at 348

Keep Sterlite on your radar

Copper futures are making a new highs. Sterlite has support at 810 and target could be 900-950.

Market is the biggest teacher

Hope you all have a nice weekend.
Markets are trading at the new high of the year and most of the participants are skeptical about this rally and when majority of the participants are predicting for corrections ; markets do not correct .What strategy one should follow then ? Well, I usually tighten the stop and use some sma of 9-12 days just to lock my profit. You should also fine tune some strategy of locking in your profit.
Kenny Rogers used to sing, “Don’t count your money, when you are sitting at the table, there will be time enough for counting, when the dealing’s done.”
markets are still in strong uptrend. Some of the swing trading ideas are given below. The sectors to watch for are Banking , Realty, Sugar and Cement .

Anant Raj Industries : Support 143 Resistance 180-188
Dhampur Sugar : Support 103 Resistance 130
Union Bank Of India : Support 265 Resistance 300-325 ( Trading at All Time High )
Gujrat Alkali : Support 125 Resistance 160
Prism Cement : Support 47 Resistance 58
RCF ( Rastriya Chemical) : Support 70 Resistance 83-89

These are some of the ideas from different sectors . Banks are looking strong on charts particularly PSU banks. Yes bank is also looking strong . Lets see how these ideas work out in the coming week.
Will keep you updated .
Have fun in your trading and learn to cut the loosers and stay with the winners.

How the swingtrading ideas with chart Pattern work?? Federal Bank

You can see the moves in Federal Bank which was our swing trading idea. The sectoral tail wind was there plus it had 6 down days and stopped falling.

It showed reversal of down days and was a very low risk opportunity. It is nearing its target.

 

Have fun and learn.

OBC Hits Target - time to book

Our one of the  swingtrading ideas OBC hits target . Time to book profit .

Todays Ideas

Global markets are supportive . The big brother Dow had a closing above 10000 for the second day in row. This is a sign of strength. Energy sector did well on rising crude price. Therefore, keep an eye on Essar Oil, Petronet. Essar has support at 160 and resistances are at 180-185. Petronet has supports at 73 and resistance is at 80-82
Cumins India is another stock which seems attractive on charts. Its support is at 376 and resistances are at 438/ 454.
Do not try to short this market, its buy on dip market .

Glaxo hits target

Glaxo hits target time to book profit

The momentum is strong - ride it

Global markets had a blast , now its our turn . Banks will see action today. HDFC Bank stop is at 1640 target is 1820 -1900. Vijaya Bank support is 50 target is 58-62.
IDBI support 125 target 160.

Traders identify the trend take position in the direction of the trend and ride it. Its very simple.
Have fun

Power of swings on charts

You can refer to our trading ideas for the month of September and October and see the ideas which we traded on the basis of swing on charts.

Sesa Goa, Jindal steel and Power , HOEC, HCC just to name a few ideas that have worked well.

Its a learning for all of us.

Have fun and enjoy the party

Federal bank

Federal bank is coming out of 7 days of down fall. Stop is at 215 and target is 250-60.

Momentum will continue

Strong global cues, good IIP numbers, coming festive season well, the party is on.
Here are some of the ideas:
India Info line -support 142, target 173
Arti drugs- support 88, target 104
Apollo tyre - support 46, target 55-60
Gujrat Ind & Power -Support 110 , target 131

Stay with Mid Cap

Nifty is trading in a range for the past one week. Its not wise to trade Nifty . As I have mentioned earlier I sold some out of money call and earning on time value.

Mid cap is the space to be in. Some of the ideas are - Central bank is a buy if it trades above 140 with stop of 128 and target of 164. Mercator Lines with stop of 60 and target is 77. FCS Software support is at 105 and target could be 144-150.

There are two large caps which are going through corrections and are oversold and offer a low risk opportunity. HCL Tech and Maruti stops are at 280 and 1420 and resistances are at 330/ 340 and 1630/ 1680 respectively.
Dollar has bounced back and it will put commodity stocks under pressure.

Mechanical trading and trading with guts

Most of traders I have come across who trade on system based trading have not been able to make money consistently. Why?? Human brain is more efficient than a mechanical trading system . One has to analyse the human greed, fear and hope to make profitable trades. I have often found that whenever market closes on extremes ie either at days low or at days high the very next day it closes at opposite. For example Nifty has closed near days low on Friday and Monday we may see it closing near the high of the day. If it happens then those who went short based on their mechanical trading system may see the stops being hit.
Now the question comes- what system one should follow and the answer is a combination of both. One must have a system but should not follow it blindly.

I have come across this article by Van K. Tharp, Ph.D titled Intuition and Trading.

The link is
http://www.iitm.com/Weekly_update/Weekly_443_Sept_30_2009.htm#feature

He has given one chart also. I too love to trade these type of stocks which show a clear pattern which gives you extraordinary results and the best part is that no one talks about these stocks on various business channels. These are the stocks which gets very little attention in media but nevertheless gives bonus rewards to traders . I made a huge profit in these two stocks. Study the charts and learn to identify the similar patterns on charts of the other stocks .I am giving you the charts of Torrent Power and Mcleod Russel.
These two stocks are at new highs and there is more upside left. The idea is to develop a system and buy when it reaches either 20 , 40 or 50 Dma - now which average is to be used is that part of system which you have to develop.
Have fun.

Glaxo

Glaxo has come out of consolidatiom, with sectoral tail wind behind it it has upside potential.

 

Support 1470 resistance is at 1620

Sectoral Moves

The readers of this blog can remember our take on Shipping sector a week ago. Yesterday everybody on TV was talking about Baltic Dry Index moves which we identified on our charts a week before. Trading is all about being ahead of the crowd.

Today's ideas are REC which has come out of long consolidation support is at 200 and resistance is at 225.Essar Shipping though does not move much but can be taken with strict stop of 65 and target could be 80

Keep Power sector on your radar

Some of the stoks of this sector  like REC, Neyveli Lignite are moving up after a long consolidation. On Charts they have formed bullish flag and now are breaking out of this

consolidation phase.

HCC has broken out

HCC has broken out after a long consolidation and so does Neyveli Lignite. Support is at 120-122 and resistances are at 145-160
Pharma and FMCG space is also buzzing up. We will keep Cipla and ITC on our radar.

We may see some action on Oil n Gas Sector

Crude Oil prices are firming up. Bonus announcement by the RIL will see some positive sentiments for Oil and Gas sector. GSPL has support at 77 and resistance is at 87. Cairn has support at 252 and resistance at 275-290.
Our ideas Renuka Sugar, HOEC and Sesa Gao had out performed the market . Balrampur Chini is also showing strength with support at 125 and resistance at 160 . Hindalco has support at 115 and resistance at 155-16

Gold and Silver are on new ground

Gold and Silver, the two precious metal are doing good and are set to make a new high . Gold had a bull run in 80s and this time again its in a new bull market because of falling Dollar, fear of rising inflation and a bit of rise in Oil prices. Once these two metals touch a new highs it will attract more buyers thus pushing the prices further up.

You can watch an interesting video about Gold chart pattern.


http://broadcast.ino.com/education/gold106/

Learn a bit about chart pattern and have fun.

OBC hits first target

OBC hits first target . Book half of profit

HOEC on radar

HOEC seems to have corrected on charts. Support is at 290 and resistances are at 345 -395

Sesa Goa Hits Target

Sesa Goa has hit target. Its time to book profit.

Market has more power on upside, Banks may perform

Global cues are very strong. All across the globe Banks have witnessed sharp up move.


Orient Bank , Syndicate Banks are good trading ideas. Orient bank has support at 220 and resistances are at242- 262-280.

Sugar Stocks are back

Sugar stocks are buzzing. Renuka Sugar has supports at 190 and resisances at 206-212

Nifty 4880 is crucial

Today we are witnessing signs of weakness. If Nifty is not able to trade above 4880 then all long positions should be squared off.

Sesa Goa has moved up. I have booked profit. FMCG stocks like HUL and ITC are on my radar

Todays Idea

Sesa Goa seems to have corrected. Support is at 258 and resistance is at 284.

Common mistakes traders make

Here is a very good piece of information for all traders. What are the 50 common mistakes traders make.
You can read the 50 mistakes and see what are the mistakes you also commit and try to improve upon them.

http://www.investmentpostcards.com/2009/09/29/fifty-common-mistakes-traders-make/

Hope to see you become a smart trader.

Buy on Dip

Well, US markets have not been able to trade above 20 DMA and are expected to retest 50 DMA. Nifty has key supports at 4850-4880.

 

One should use the dips to buy and as long as 4800 in intact the trend remains up. IDBI, IDFC looks good on charts with support at 118 and 150 respectively.

 

Infosys is going to announce its result this week. If it comes out with positive result then we may see moves in Rolta and 3 I Infotech

 

Jindal steel and Power

Jindal steel and Power seems to have resumed its uptrend after correction. Support is at 570  and target could be 650. Looking at market levels one should not feel too excited and buy in small quantity in cash with strict stop.