SL - Stop loss

Stop loss: Stop loss called SL in short form is the price at which you should sell your stocks if they go opposite to your prediction to mitigate your losses.
SL is a must for every day. Avoiding stop loss is our general tendency because we always think that stock will turn around but that rarely happens. We have to get over this mental block and should always keep a SL before every trade.
Avoiding stop loss generally leads to heavy losses. Rather than avoiding LS keep your trade profitable by buying at good time(DIP or HIGH).
SL should be generally strict for F/O and intraday segment and less strict or trailing for cash market.

Happy trading and Good luck!

Interesting day today

Hi Investors,

Interesting day today because we are high and nifty is again breaking out but the issue is it has gone down from here many times. And almost every stock we monitor is breaking out and going high. But be very careful risk is high but reward is equally high. High cash trading is advised since it is not subjected to expiry whiplashes of F&O/derivatives.

So trade today in cash market and reap rewards till nifty is going high and beware if it goes down as it has done so in past many times from these levels.

Curious case of RBI policy

This is a unique day. The markets hiked despite betting that market will go down. Very good and curious day. All our stocks looks like going high which we have been tracking but this could be a whiplash. So we would still wait till expiry but willing traders could go for expiry risky trades on atleast banknifty.

Wait till RBI numbers

Keep your eye on RBI announcement. Till that market will be choppy and would not give any clear signal. If it jumps above 6100 on closing basis means market have a bullish trend or it goes below 6100 then that means bears will continue pushing market down.

Wait till RBI numbers

Keep your eye on RBI announcement. Till that market will be choppy and would not give any clear signal. If it jumps above 6100 on closing basis means market have a bullish trend or it goes below 6100 then that means bears will continue pushing market down.

Some observations and previous calls.

Nifty at important resistance and support of 6100. If it breaks support of 6100 then you can see more downturn on closing basis.

Our DCB call worked wonderfully but targets remain.

And our Cairn call breakout price didn't reach so no trade for that one.

We are still very careful because market is still not showing any clear signs of any trend. We will wait till expiry.

Stocks for expiry week

Hi Traders/investors,

Lets look at these two stocks.

Cairn India:
Cairn has been on upswing since few months but it is reapproaching its support and has touched its trendline support. It has a support zone at 312 - 310. Below 312-310 on closing basis it can go down too as people are still apprehensive of its deal with vendanta which is not coming off.
If it goes above 315-316 on closing basis. Then buy this stock. Otherwise leave it.
Target: 328-334
SL: 310-308




DCB:
This stock was given a sell a few days ago. And now it is following the prediction very well. But be careful while trading intraday as this stock is a jumpy one. But general trend should follow. Use your own discretion.
Target: 48,46,43
Current SL: 51

Old calls: LT and Bajaj corp completed target wonderfully.

Our old calls which worked wonderfully.

LT:  Our call worked very well. Touched the targets that were given earlier on 11 oct.

Bajaj Corp: This call worked well too. Our target were of 240 on correction and they got hit very well. Targets were given on 17th oct.

Hi Traders,


Nifty Choppy as said. UP and downs. 6240 breached but couldn't hold but there is a chance it will go up till 6350 if it closes above 21000 on BSE and 6230-6240 on NSE.
Lets have a look at chart.

Bank Nifty:

Well bank nifty is around a break out. If it breaks then expect bank stocks to make a rally. UCO bank is also on breakout. So look out for that.

After 10950 breakout expect a rally for a target of 11190. After that consider next target as 11748.

Wipro:

Wipro looks on a sell spree. Take the trade while you can sell it as it will not go on for long. Sell below 468. 

Target:455

SL: 484

Keep it tight. This is a buy stock in actual but it may go down for tomorrow. Remain very strict with this one or you will lose money. Trade after 10 15 only.

UCO Bank: As suggested earlier it has resistance band of 68-70 which it is breaking quite often.

Target: 75

SL: 64,63

Keep an eye on Indiabulls realestate as advised earlier it had posted a strong result and is down today due to profit booking. Buy it at current prices with target of 71 -75.

Overview and new promising stocks

Hi Traders/investors,

Nifty looks choppy as predicted. Nor a clear fall or a clear up. Possibly because of good breakout and bad economy. But we expect it to go on rangebound mode till elections.

Nifty:
Short nifty below 6093 on closing basis.
Target: 6000
SL: 6180

DLF:

DLF seems to be going rangebound again as predicted earlier too.
Buy Puts below 157.
Keep holding shorts then for a Target : 130
SL: 165

 IndiaBulls realestate:
For medium term this stock is still bullish. Buy on dips.
Target: 72,75.
SL: 63,62.

SRS limited:
This stock is showing bearish trends. If trend line is broken it can go down for a short term target.
Short below 35.9. It can go till 34.80 for correction in stock.
Target:34.80
SL: 39
Keep this trade tight with strict stop loss and targets.

Calls worked. Profits booked.

All our short to medium term calls worked wonderfully. Profits booked. Check our last post to confirm.

ITC

ITC:

ITC  at all time high and at a resistance. Results are due for oct 25. Most probably results are going to be good. Buy on current levels.

Current: 345
Target: 370
SL: 335

New lucrative calls and breakouts

Hi traders/Investors,

Some calls.

SBI:
SBI looks like rangebound but can also breakout so if a breakout happens after 1696 then it can go upto 1800. I would advise holding it for long term as SBI is gonna rebound.

UCO Bank:
Banks are now pushing the Nifty instead of IT stocks so UCO looks good.
UCO bank looks promising it has broken its trendline and now on slanting support line and moving ahead towards 68 resistance. If broken can go to 75.

Target :75
SL: 64-63.

Yes Bank:
This stock has also broken Cup and handle trend and also getting support on slanting trendline. After 362 it is going to for target of 390 and then 425.
Current price: 358
Target: 390, 425
SL: 330

Our Old calls

Hi Traders,

Nifty at all time high and also on edge of tumbling either side. My mind says it will come down and become range bound but that doesn't mean you can't be bullish on individual stocks. I can also be wrong about Nifty but till now it is looking right. A stronger ruppee can push Nifty up too.

So Lets look at our old calls.

LNT: Targets achieved and a highly successful call. Stock zoomed past as expected and are near second target of 940. I would advise to book profits for about 75% and leave the rest for 940 target.

Bajaj Corp:
Call was given for this stock and call performed wonderfully and reached a high of 237 and our target was of 240. Profits booked. It can touch a high of 240 but after that I would advise to go out of this stock as this is not a good long term stock and highly unlikely it will reach its old glory for at least 1 year due to latest acquisition of "No Marks" brand.

IndiaBulls realestate:

Advised to buy it after 63 and it zoomed past to 66. Huge 4 plus percent gain. Our target is of 71-72. Book profits after 71 with a stop loss of 62.

ONGC and SBI

Hi,

Nifty is at all time and high and also broke the barrier but bullish trend is still very much speculative as global and internal woes are very much real.

Larsen and Toubro worked great. But watch out for breakout as mentioned before for more buy.

Today I come with two stocks ONGC and SBI.

ONGC:

Looks promising and good fundamentals.

Buy at 283-284 levels

Target: 291 - 293(2 to 3 days)

If crosses 293 then next Target 310 - 320.(medium term)

SBI: 

Well this stock is some what different. Its fundamentals are strong but NPA(non performing assets) are one of the highest due to bad economy and other bad loans. But overall it is a cheap buy considering it is at 3 year low.

So I would recommend it for medium to long term because it will bounce back when economy recovers.

Buy at current levels of 1665 

Target: 2000

SL: 1450

For short to medium. Target: 1850 SL:1550

Some promising stocks

Hello Traders,

Nifty goes down as predicted in last post. Nifty is range bound and expect more choppy trading and more downs and ups. Now I think nifty will go down more often till 5800-5900 band.
I am giving some promising stocks here.

Bajaj Corp:
Bajaj corp has shed huge points and is in deep red. It looks promising on valuations to buy it for short term target of 240.

IndiaBulls Realestate:
As said earlier until the breakout of 63.5 is broken don't buy it and India bulls doesn't break it and traces its step back. It is at 60 now. So it again range bound again due to selling pressures and can go down up to 52. So if it goes up to 52 you can buy at dips for a range bound target till 63.

LT:
Same is the case with the Larsen and Toubro. Buy at lows since 886 is not breached and stock has become range bound. So keep on buying at lows and sell on highs. Range's lowest point is 777. Current rate is 836. Currently the rate is on support of trendline. Below this it can go upto 777.

UCO BANK:
UCO Bank didn't breach the resistance of 70 and has become range bound it seems. But keeping support at trendline @64. So keep on buying at lows. Below 64 it can go to 58. Buy for a target of 70 till it is breached.

Hi Traders,

Nifty may move down but over all nifty would be choppy till coast is clear on economic front.

Moves for tomorrow:

DCB: High has been achieved and resistance is there. Due to higher profits in Q2 report it may achieve some gains but I would advise you to sell on highs as this stock is going down if goes below 51.5 because its resistance of 53 is not broken effectively for a long time and has pulled back again and again.

Indiabulls real estate: Trend breakout is there. Resistance breakout need. Buy above 64 for a medium to long term target of 75 with SL of 57.

UCO Bank: Wonderful stock. Worked like charm on short term target given by us for target of 70. For long term the target was 75. But the key is when to buy? Buy on lows. Since this stock is range bound it has strong support at 57 and strong resistances at 70 and 75. So the trend breakout is here with good volumes, hit a resistance of 70 and came back. Also because the market is pulling back and weak IIP and strong inflation numbers. So wait for it to stabilize around 64 and then come back again to 75 levels after breaking 70.
So the call is buy at lows below 66 and sell half at 70 and rest for 75.

LnT: If LT pulls back for support at trendline then buy at 843 for a target of 890 and then 950. Basic strategy is buy at lows and sell at highs.

DCB, Indiabulls real estate and LNT.

Hi Traders,

Starting from nifty. Nifty is choppy. It is gonna range between 5800 to 6200. It doesn't seem to be breaking resistances. Global factors are also affecting it.

As for stocks. LnT is still a good stock as predicted till 900 but for future be careful as it has a strong resistance at 886. Breaking that it will cross 900 with a target of 950 and 1000. Its result is due for 18th which will most probably see a increase in revenues but dip in profits due to Forex losses and other issues. So expect a drop just in case. Would be beneficial to buy in dips because for longer term it can surge.

DCB:(Develop credit bank ltd) 
DCB seems to have reached its strong resistance and this resistance has not been broken for a long time.
Would advise to short this one.
Current rate: 50.5
Target: 43-42
SL: 53

IndiaBulls realestate: 

India bulls realestate have given a breakout from its trendline but resistance of 64 is still not broken. May be because of result of this quarter is still not out which is pending on 22oct. Lookout for this one.

Updates for 15October: Uco bank comparison & Indiabulls real estate breakout

Hi Traders,

The old calls worked as expected and they are still valid despite the US debt ceiling issue. Ceiling issue can trigger sells but still I will go with technicals as they rarely fail.

UCO bank comparison:

Lets look at a new stock for a change but the technicals are looking promising.

India bulls real estate:

Breakout is achieved although volumes for breakout were low so would advise to buy above 64.5-65 for a target of 75. and SL of 57.

As expected

As expected Hindalco performed as predicted. Touched the target of 110.
Same goes to UCO bank and unitech. Both of these stocks did break out as expected. Accumulate them but I would advise caution due to US default issue again. But technicals are solid for these stocks so you can expect one or two up-downs but mostly it will be as predicted.
LT is still the go to for long term. It may shift back to support line but it will rise. 

Some important stocks to lookout for in next few days.

Hello Traders/readers,

I am listing some stocks to lookout for in next few days for possible breakouts. Also including charts.

ONGC:

ONGC showing good promise but buying should only happen after it breaks 280. Cup and Handle approaching.

Yes Bank:
Cup and handle formation. May break out. Should be monitored for next few days. If it breaches 360, long positions should be held.

DLF:

Resistance approaching. Stock has been range bound for months. 

Most promising breakouts for next trading day.

Hello Traders,

Starting with Nifty you can clearly see a head and shoulder forming and one neckline already breached. Also an important resistance of 6094 broke but with not much volume. So we should not be so over the board with this one. Now ahead of US debt ceiling issue we can see some choppy movement but also crucial industry results will be out so graph may jump a little. But people betting on Nifty should be careful as Debt ceiling issue can crash it. Here is the chart.

Larson and Toubro:

As predicted before acc. to analysis this is a good stock to accumulate for medium to long term. Even I am accumulating on this. It has a possible Cup and handle breakout. Also order book is solid.

Target: 900 - 950 - 1100

SL: 806

UCO bank:

UCO bank shows great promise with Head and shoulder break out. This is the one to look out for. There are possible US debt ceiling issues which may drag it to lower 60 levels but it is still a good technical breakout. It closed above 200 day average and also with good volume.

Target: BTST(buy today sell tomorrow at 70) , For medium term target: 75 - 82.

SL: 63 - 62

Unitech:

This stock has not been my favorite but now it shows some positives. It broke a resistance of 18.5 with huge volumes and also 20 & 50 day average lines. Buy above 19.4.

Target: 21-22

Stop loss: 16

Hindalco:

Hindalco is showing bearish trends. Most probably short term. It is breaking trends. I would advise you to exit your long positions below 113.5.

Can also buy PUTS for short term too with target of 110 and SL of 117.

This is all for next trading day. Will post certain new stocks with possible breakout in a short time.

11Oct2013

Hello Traders and Readers,

I would start my blogging journey with my last analysis of market on 11-10-2013. It is also a lucky day for me as all my analysis were 100 percent on the spot today :). It has been a good day for market with Infosys result out. Infosys has revised its guidance to 9-10 percent. With shift in Infosys from Shibu Lal to NRN. It has gone back to its ''underscoring its performance'' days. What that means is Infosys will keep its guidance low and surprise the market by delivering more. On the operational front all is not too well with Infosys. Revenue stream is tight and attrition rate is quite high at 17.3 %.

Coming to market front. Nifty jumped today but all is not too well on this front also. IIP numbers came out and they are looking gloomy. August IIP numbers stand at 0.6% compared to 2.8% in july. Except electricity numbers all other sectors are down. Electricity sector stands at 7.2% compared to 5.2 in july. But growth may still happen and exports are likely to grow because they are cheap now, thanks to Rupee depreciation. Also Repo rate has been decreased by RBI which will help liquidity flow.

Here are some tips and analysis for enthusiastic new and seasoned traders. All these tips showed great promise.

Hindalco: 
Short term Shorts were advised with Target : 111.4 and Stop Loss : 120. As we can see from graph important support point of 111 is not breached and stock is not totally oversold so we can expect one more drop. If 111 breached than expect more drop purely on technical basis.

LNT:
I have big hopes from this stock. Their order book is solid and they have good PE ratio which means the stock is cheap. As predicted from graph it showed good result on 11 oct.
For long term target: 950, 1000, SL: 806.
For short term: Target achieved.

Ranbaxy: 
Stock showed good response to analysis but it is still not sound for long term. So short term risk can be taken if it crosses 409. Target: 420. SL :392

Unitech:
This one as predicted also performed well enough. But would tread safely as stock is very jumpy. But important resistance of 18.5 is breached so can expect more upmove till 22 because breach happened with good volumes.

Yes Bank: 
This stock can can give your short to medium term gains. Target: 350. SL:335

Nifty: 

Nifty opened higher because of strong performance of heavy weight stocks like Infosys. If resistance of 6093 is breached we can see more upmove.