A plunge in Indian Stock market

[amitrandive]

TRADING RULES
Source:Internet

1. Nothing new ever occurs in the business of speculating or investing in securities and commodities.
2. Money cannot consistently be made trading every day or every week during the year.
3. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.
4. Markets are never wrong – opinions often are.
5. The real money made in speculating has been in commitments showing in profit right from the start.
6. At long as a stock is acting right, and the market is right, do not be in a hurry to take profits.
7. One should never permit speculative ventures to run into investments.
8. The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.
9. Never buy a stock because it has had a big decline from its previous high.
10. Never sell a stock because it seems high-priced.
11. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.
12. Never average losses.
13. The human side of every person is the greatest enemy of the average investor or speculator.
14. Wishful thinking must be banished.
15. Big movements take time to develop.
16. It is not good to be too curious about all the reasons behind price movements.
17. It is much easier to watch a few than many.
18. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole.
19. The leaders of today may not be the leaders of two years from now.
20. Do not become completely bearish or bullish on the whole market because one stock in some particular group has plainly reversed its course from the general trend.
21. Few people ever make money on tips. Beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket

 

[amitrandive]

Posting Daily chart of Zeel.

With the entire market in positive,Zeel managed to close down in negative.


Daily Chart of ZEEL.

 

[Sunnyraj]

Amitji , on ZEEL chart, moving average is acting like a resistance, also it has fallen from support of 357 levels.

going ahead, what are your views.

Can we expect further downmove ?

 

[sspms2002]

Amitji , on ZEEL chart, moving average is acting like a resistance, also it has fallen from support of 357 levels.

going ahead, what are your views.

Can we expect further downmove ?

Hi.
On ZEEL , i have been looking at it from last few days , so i can see that Buyers are trying to push it up but failing to do so...

So i think a move after it breaks 338-339 would lead to a good down fall to it...

On Upside i will be convinced only if sustains above 353-357 area.

 

[sspms2002]

Some stock ideas for the coming week...Although i do only day trade and these are daily charts..but to have a sense on the directions will help in placing right kind of orders.

Also as i am learning about candlesticks it would be a good forum to make consensus on if iam analyzing it correctly.

My first Image upload..Hope it uploads correctly

Premise:
The chart is of MASTEK...it made its 52 week high and has retreated in last few days....

Now it is near its 50 SMA...it has retreated it BIG WHITE Candle and now its at its 414 level...


A NewBee Analysis: If it breaches 414 it may touch its 50SMA and then have a deciding move either up or down...

Up move can reach its 52 week high and its down move can at least go till 380 to 390...

Up Move is more plausible as volume is drying on down days..


Candle Stick pattern: None i could identify, or was it bearish engulfing on the last 5th and 6th day?

 

[sspms2002]

LIC Housing Finance

Premise:
The chart is of LIC HSG FIN...it made/touched its 52 week high again..

Now it is above its 50 SMA...it retraced back after hitting high...so there is ample supply and people are looking to book profits at top of now..


A NewBee Analysis: It touched its 52 week high again just yesterday and swiftly came back down..it would be interested to see how the next trading day behaves...

If it start going down it can reach 440 to 450 area of support...

If it starts going up it will strive to break its 52 week high and may take god effort to do so..but once broke..there will be no immediate resistance and it can rise good..


There was a good volume on last red candle at its high so it can look to go down...(but as that was budget day, we should wait for more confirmation )

Candle Stick pattern: bearish engulfing pattern


I am a learner on Candlesticks patterns/day trading and above are my personnel views.

 

[sspms2002]

ADANIENT Analysis:

Premise:
The chart is of ADANIENT...it made/touched its 52 week high again..

Now it is way above its 50/20 SMA...its in strong trend...


A NewBee Analysis: It touched its 52 week high again of 697 and remained at its high area..but it is also at a psychological level of 700 which might take some effort to break...

If it start going down it can reach 660 area of support...

If it starts going up it will strive to break its 52 week high and may take good effort to do so..but once broke..there will be no immediate resistance and it can rise very well...

I guess it need some positive impetus to break the 700 level though its having good momentum upwards. I would like to trade it if it goes beyond 700..


Candle Stick pattern: None specific of now that i could trace


I am a learner on Candlesticks patterns/day trading and above are my personnel views.

 

[Riskyman]

LIC Housing Finance

LIC Housing Fin, Like a lot of other stocks went up due to all the hype about affordable housing in the budget. News didnt back the price move and we saw a huge profit booking. Yes you are right in saying that it may head down to 440 levels, faster if nifty also begins to correct.

 

[sspms2002]

LIC Housing Fin, Like a lot of other stocks went up due to all the hype about affordable housing in the budget. News didnt back the price move and we saw a huge profit booking. Yes you are right in saying that it may head down to 440 levels, faster if nifty also begins to correct.

Thanks Riskyman...Seniors views are very much needed here as they would refine the findings and as well as my thinking pattern...

Their experience & Knowledge will add more value for me and other traders...

 

[sspms2002]

Today was a good trading day for me. I was disciplined and little research over weekend also helped me in getting perspective about different stocks.

I opened by having a LONG position of 300 in CIPLA at 683..The stock had not moved much compared to its counterparts and i was expecting it to move good and reach 700 level..

It started going up after retesting 682- 683 price level multiple times..

It moved 3-4 Rs in favour and then starting pull back..It was difficult to hold as there was urge to book profits based on some of my previous exp.

But i some how had patience till 690 level...then when it started moving in 687- 690 range..i booked at 690.

I made around Rs 2100 in that trade.

But indeed i should have had more patience or at least should have covered on half the size..As the stock went on to reach 700 level and then breach it and close at 716 by EOD.

I guess i could only book 30% of the move...that was very bad and i am really frustrated and looking at ways on how to optimize the exits..

Then i took short position in ZEEL at 345 level and booked around Rs 660 at around 342 price..

I also took a LONG in PFC but booked small as it was then not moving as much. I booked around Rs 300 in it.

The Good part about today was that i took position in the prevailing direction of the trend.

Stocks Traded: ZEEL , CIPLA , PFC
P&L : Green 3056 after commissions

Lessons learnt: Let the profits run..