LIC Housing

Date: 21st Feb, 2017

Time: 9:24 IST

By Puneet Marwah

I will buy LIC Housing at 560 / 555.50 with the target of 567 / 572 / 578.
I will also enter LIC Housing 580 CE for March Series with a cash target of 640 in mind. Operators seems to be accumulating - Bulk before move. Rally is expected in March

                  

By Mukesh Gupta

Descending triangle in the making with bollinger band squeeze, one can enter in the trace with 543 as stop loss on closing basis. I would still wait for the breakout on upper side at 569 for the confirmation + if PSAR in our favor below the candle

though Stochastic and RSI both above 50 (good confirmation of momentum), I am worried about the volume, which is less.

 

a clear flag and pole breakout at 552-553 levels, another confirmation of bull run in the offing. all charts are on daily time frame.

By Ramana Gottipati

Breakout of Cup and Handle Pattern:

High of the cup: 572

Low of the Cup: 499

Height of the Cup is (572 – 499) = 73

The above Pic Shows the Breakout from Handle Channel.

Breakout Price is 556.5

Target Would be: (556 + 73) = 629

To join us on whatsapp, fill your data here. Mention "Trading Terminology" in reference column

Read More

Relative Strength Index by Mukesh Gupta

Relative Strength Index (RSI) is an oscillator that shows strength of momentum in price for a defined period of time. Default value is 14 period and if the candle is of 5 mins it will calculate and show you strength of momentum from last 70 minutes. RSI is always in the range of 0 to 100 where value less than 30 is considered as oversold and more than 70 is considered overbought.

                  

How to use RSI - RSI shall never be used as a single oscillator to decide trades, it is always preffered to use it in conjunction of some other indicators like moving averages etc. For simplicity, if RSI goes below 30, consider that stock is moving in oversold state and keep it on your trade watch list, when you see an opposite direction movement where RSI starts moving upside and crosses above 30, if other indicators are showing the same trend reversal you can go long and once RSI moves above 70, you can start taking partial profits. You can do exactly opposite for a short trade where RSI will reverse from level above 70, cut below it and if other indicators are in favor.

Always remember that RSI is a lagging indicators which calculate values based on past data and does not guarantee that trend reversal will only happen in oversold or overbought zones only. It may happen that a stock has RSI more than 70 and stays in overbought zone for days (super bullish trend) or below 30 and stay in oversold zone for days (super bearish trend) + it can stay in the range of 30 to 70 (no trade entry zone) for even months.

As always bigger the chart time frame better the results with RSI

If used effectively, RSI alone can give you wonderful results on your trades.

Quick byte - *only applicable for ultra scalpers*

Use 2 minute candle and 7 period RSI

1. When the RSI become 0 buy with stoploss just below the last candle and exit in 2-4 minutes with whatever profit you get.

2. When RSI become 100 sell with stoploss just above the last candle and exit in 2-4 minutes with whatever profit you have.

To join us on whatsapp fill your data in below form - reference - 'Trading Terminology Blog'

https://goo.gl/forms/YPb6SCkbpnQNCH763

Like us on Facebook

https://www.facebook.com/tradingterminology/

Read More

Fundamental Analysis - Basics by Raj Vora

Every month we try and bring out something new on the blog. 

• We started our blog in December 2016. 
• We started to share the trades that we enter in from the month of January 2017. 
• And this month, February 2017, we have decided to initiate spreading knowledge on Fundamental Analysis.

We will try to come up with regular post on the subject "Fundamental Analysis" starting from as basics to advanced versions. Before proceeding, let us first understand what Fundamental Analysis is.

                  

Wikipedia defines Fundamental Analysis as 

"Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities, and earnings); health;[1] and its competitors and markets."

Fundamental Analysis is the kind of analysing a company on the parameter of it's business and financials. By this we mean, the study on following subjects but not limited to is carried out to determine the strenght in the company:

What is kind of business the company is into?

• How progressive the business is?
• How the products / services of the company are performing across previous quarters and years?
• How is the company's performance across it's peers in the industry?
• How competitive company's product and services are? Is it replaceable with other product / services easily?
• How does the company manage it's employees, creditors, debtors and shareholders?
• Is company prepared to handle the sudden increase / decrease in demand of it's product / services?
• Are company's clients distributed among different regions / category of client or is it concentrated in one region / category of client?
• How responsible the management of the company is? 
• What are the future prospects of the company's products and services?

 

Fundamentals analysis is used to determine the intrinsic value of a company by studying their income statement and balance sheet along with its cash flow statement.

• Income statement tells us about the profitability of a company. How much profits a company is making and what are it's margins. It can be identified by looking at the income statement.
• Balance sheet tells us about the assets and liabilities of a company.
• Cash flow tells us how much cash a company has and how effectively company has utilised it

If you are a long term investor, analysing a company on the fundamental basis is very essential to retrieve the maximum profits from the markets. It is very important to keep the noises at bay and concentrate on the facts in order to take the decision of creating your wealth.

We will study more on fundamental analysis and into greater detail in the coming posts. So stay tuned.

Author: Raj Vora. Raj is studying BBA currently and is very passionate to learn different aspects of Stock Markets. He prefer to tag all his post as #ow. 
 
To join us on whatsapp, fill your data here. Mention "Raj - Blog Post" in reference coloumn

 

Read More

My Trades - Equity - February 2017

                  

Click here to view my Trades - Equity - January 2017
 
Click here to view my Trades - Equity - March 2017
 
Click here to view my Performance Report

Date: 2nd Feb, 2017

Time: 9:31 IST

I will buy Axis Bank at 476 and will look for target of 484 / 490 / 500 and if it goes to 472 I will book my trade and take in loss.

Time: 10:05 IST

I will buy Intl Combustion at the level of 450 / 395 / 370 with a stop loss of 350 and I will close my position when I will see the levels of 800

Time: 13:43 IST

I will buy Reliance Capital at the level of 473 / 469 / 467 with a stop loss of 464 and I will close my position when I will see the levels of 490

Date: 3rd Feb, 2017

Time: 11:01 IST

Sun TV which I bought at the level of 518 with having the target of 670 in mind.

It had formed the Neckline Evening Star on Monthly formation that time. And I had mentioned that if it sustain and close above 518, we will see 670 levels. Click here to view my post where I had mentioned about Sun TV

And the level is reached as predicted. I am glad to post here that I have closed my all position at 670 and enjoying a return of 29.3%.

Time: 11:05 IST

I have closed my position in Reliance Capital at 490 today.

Time: 14:15 IST

I am happy to see that Axis Bank is trading at the level of 492. I am waiting to the levels of 500 to book all the profits.

Date: 6th Feb, 2017

Time: 10:55 IST

I will buy NCC at 88.20 and more at 87. Will sell it at 92. However if it comes to 85.20 will book the loss

Time: 11:00 IST

I am holding HDIL and will sell at 120 / 142

Time: 11:24 IST

I have booked Cipla at 620

Time: 11:29 IST

Sun Pharma - I will buy at 662 / 658 with a stop loss of 652 and book profits at 672

Time: 11:57 IST

Mothersun Sumi - I will buy at 334.7 with a Stop Loss of 331.80 and will book profits at 343 / 346

Time: 13:44 IST

Axis bank as predicted has reached a level of 500 and I have booked all profits.

Time: 14:24 IST

I will buy Voltas if on the closing basis it is above 338.50. And will book profits at 341 / 346 / 352 levels. Will keep a stoploss of 334

Date: 7th Feb, 2017

Time: 11:40 IST

Today we have results of IDBI - It may retest low levels and bounce. I will place buying bids at 78.5 / 79.50 with a Stop Loss of 77.40 and will book profits at 85.Also buy if it triggers - Today's High

Huge upsurge in volumes of Hexaware on upside. Some big move expected on either side. 220 CE and 190 PE - On screen - will initiate call

Huge upsurge in volumes of Hexaware on upside. Some big move expected on either side. 220 CE and 190 PE - On screen - will initiate call

Time: 14:20 IST

IDBI hit the high of 85

Time: 14:42 IST

Motherson Sumi - Entered at 334.7

Time: 14:45 IST

Hexaware - Buy 210 CE @ 1.9. Cash Levels expected to touch 194.60 - will buy. Otherwise will do BTST - 2.2

Time: 14:52 IST

Motherson Sumi - booked at 337.50

Time: 15:08 IST

Bought MRPL at 110

Time: 15:08 IST

I will buy Titan at 392 with a stop loss 389 and book profits at 399. I also booked MRPL 50%

Time: 15:22 IST

Booked 50% of Titan @ 394.50

Time: 17:46 IST

I will square off my positions of Hexaware when cash price reaches 201 and Titan when it touches 399

Date: 8th Feb, 2017

Time: 8:24 IST

CLSA upgrades Titan to Buy with a target of 500 (27% upside). Will monitor Titan at opening and won't book at 399 as thought yesterday

Time: 9:11 IST

Titan opening 410 +16.55 (+4.21%)

Time: 9:20 IST

Booked Titan at 418

Time: 15:16 IST

I will do BTST of Tata Global 150 CE at 2.5
Also will invest in cash at 146 and will wait for the target of 165 / 185

Time: 15:22 IST

Something fishy in Tata Global. Post giving call, volumes shoot up suddenly. I am booking 50% CE at 2.5 and book rest at 2.8. However holding the cash.

Date: 9th Feb, 2017

Time: 13:19 IST

Voltas Call looks  is active

Time: 14:48 IST

Axis Bank will enter at 481 and more at 477 with a stop loss of 472 and wait to book profits at 514 / 519

Time: 15:29 IST

Voltas is trading at 345

 

Date: 10th Feb, 2017

Time: 8:33 IST

In my watchlist - NCC, SBIN, BOB, Mothersun Sumi, Voltas and PC Jeweller

Time: 9:10 IST

Mothersun Sumi is looking superb on Charts. I am holding it tight.

Time: 11:04 IST

International Combustion is trading at 566 which was bought at 450. Booking 50% today. Enjoying 25.7% in 15 days.

Date: 12th Feb, 2017

Time: 16:38 IST

I have added Siemens in my Buddy Stock List. Looks like it is ready to participate for next big move. Soon will be in league of momentum stocks. On Monthly Charts the formation of Symmetrical Triangle is formed. Behaviour - Neutral. With a five years duration stock can touch 10000 (lower side). Reason is simple - Dependency - Monopolistic (Next Spending Cycle for Railways - 2 Lac Cr). Chart structure is showing Cementation and Accumulation.

SunTV can see the levels of 1500 in next 2 years. I will start playing in the stock with 682 / 670 levels.

Escorts can see the levels of 600

Date: 13th Feb, 2017

Time: 10:52 IST

I will buy Petronet at 377 and few more at 373 with a Stoploss of 367 and will book profits at 394 / 420

I will buy Mothersun Sumi at 348.50 and few more on 344 with a Stoploss of 341 with a target of 359 / 367 / 390

Time: 13:58 IST
Siemens - Placing buying bids at 1177 with a target of 2400 in few months and 10000+++ in 5 years time.

Time: 14:44 IST
Enjoyed the ride of Motherson Sumi from 341 to 355 and Petronet Ride from 377 to 382.

Time: 15:05 IST
Motherson Sumi - Option CE 370. I will enter at 2.80 with a Stoploss of 1.80

Reliance Infra - Option 560 CE. I will enter @ 5.50 with a stoploss of 4.20

Date: 14th Feb, 2017

Time: 9:43 IST

I have booked all profits at 385

Time: 9:56 IST

I will buy Concor @ 1247 as a delivery call and book profits at 1800/-

Time: 13:58 IST

I will enter in Hindpetro 560 CE - March when cash price will hit 537

Date: 15th Feb, 2017

Time: 9:50 IST

I will buy Sun Pharma at 624 / 618 and book profits when it goes to 638 / 649 / 652 / 672 / 687 / 718

Date: 16th Feb, 2017

Time: 9:56 IST

I have started booking profits in Sun Pharma

Time: 9:57 IST

Hindpetro - I will buy when cash price will hit - 518

Time: 12:04 IST

I have started booking profits in Sun Pharma

Time: 12:07 IST

I will buy Reliance Defence & Engineering at 60 / 58 with a stop loss of 56. I will book profits at 63 / 67 / 70

Date: 20th Feb, 2017

Time: 8:00 IST: Members Queries

Hardik: What is your target for Hind Petro?

 Image Courtesy: Hardik

Puneet: 

Scrip Hindpetro - 

Event - Results below expectations 

Summary - Stock corrected from - 585 levels to 521 

Best - Supports - 537/ 518 

Best - Resistance - 549.50 / 562 / 575 / 584

Stock should face strong resistance around - 548/ 51 levels and of market turn - Negative say by reason,  could open channels to hit due target of 518 

Since Nifty has shown the move - I would be watching - 549 - as decision rate for next move

Hardik: View on Kotak Bank
Balesh: How you look at Kotak Bank? The promoter need to sell their holdings.

Image Courtesy: Hardik

Puneet:

Every bank Requires funds to keep ticking the clock of lending - Important here is to understand the Utilization of funds 

If people sell - Wise to Buy and hold -

 Time: 9:00 IST

Tracking the Big Daddy - 

DLF

Event - Close to sell rental arm - Worth - 14000cr

🔵Might use the amount to repay debt - Positive 

Should happen in march end - 

Present price is still lucrative  to hold - For delivery - I will Buy at 139.10 / 134.30 / 127 / 117 / 111.70 /  101.10 with a target of - 182 / 210/ 240 / 260 / 292

I term this as Step Cementation &Platform Trading

Observation - Chart formation shows - Most of share Accumulation  process is done. Simultaneously it gives initial signs that this time management is serious to strike the deal.

Time: 9:56 IST
Ashwani Gujral / Sudharan Sukhani - Short on - SunTv - 678 Levels - Now - 687. My buy zone will be 670 / 682

Time: 9:58 IST
I am keeping a track on Mothersun - Sustaining above - 354.50 / 356 - Could hit target - 370

Time: 10:23 IST
Sunpharma - Holding Strength - I will exit All delivery longs at 707.30

Time: 15:12 IST
I will do BTST in Allahabad Bank

Date: 21st Feb, 2017

Time: 9:24 IST

I will buy LIC Housing at 560 / 555.50 with the target of 567 / 572 / 578.

I will also enter LIC Housing 580 CE for March Series with a cash target of 640 in mind. Operators seems to be accumulating - Bulk before move. Rally is expected in March

Date: 22nd Feb, 2017

I will buy shares of Sun Pharma a 669 / 670 with a stop loss of 659 and target of 694

I will buy Sun Pharma a 700 CE - 14 / 14.10 keeping Stop Loss of 10 with a target of 25

Time: 23:08 IST

I will buy Axis Bank tomorrow 540 CE when cash price hits 503.60

Date: 23rd Feb, 2017

It looks like participation in HDIL / DLF has started.

Time: 23:03 IST

March Radar - Will trade with keeping below levels in mind.

• Nifty New High Before - 11 March
• DLF - 157 / 161 / 177
• HDIL - 71 / 76 / 82 / 88
• Mothersun - 370 / 390

Date: 24th Feb, 2017

Time: 17:23 IST

I will buy Eimco Elecon for delivery at hte price of 503

 

Date: 26th Feb, 2017

Time: 20:13 IST

NCC - Ascending Triangle Formation - Ready for Break Out - I am keeping eyes for large volume breakout. I feel best buy will be 79.70

 

Date: 27th Feb, 2017

Time: 10:36 IST

Intl Combustion - I have booked 50% at 450. Eimco - good to buy @ 500. Holding shares may multiply gains. Keep investing your profits.

Time: 12:28 IST

Booked portion holding of RDEL at 63. 

Time: 12:35 IST

Markets expected to perform dull - Before GDP Numbers, Auto Sales, UP Elections, FED Mins. Although not bearish - Holding Longs - Dont panic. 

I will buy Sun Pharma at 670.50 / 669 and sell it at the target of 694 / 92

 

I will also trade Sun Pharma 700 CE at 14 / 14.10 with a Stop Loss of 10 for the target of 25 - March Expiry

Time: 14:01 IST

I will buy Jain Irrigation at 89 / 82 with a Stop Loss of 79 and sell it at 114

Time: 22:55 IST

I will trade in Morning on Axis Bank - 540 CE when cash price will hit 503.60

Date: 28th Feb, 2017

Time: 9:36 IST

I will buy Sun Pharma above - sustaining level of 687 with the target of 706. We need any of two ends to click. On downside - 669. On upside 687.

Time: 13:45 IST

DLF could sustain 149.70. I will do BTST with the scrip. I am doing BTST - Mothersun Sumi.

To join us on whatsapp, fill your data here. Mention "My Trading Calls - Blog Post" in reference column

Read More