Charts for the Day

[anil_s_trivedi]

DLF tanking to life time lows...still some ppl averaging in the hope...
Those who are disciplined will be smiling and rest will only have hope in their pocket...
The 'Too big too fail' finally caught to Indian stock market...The likes of DLF, JPASSOCIATE, SUZLON and etc..etc...the list is will not end...still ppl...want to go for these ones...

This also highlight important of stoploss in your trading plan/system...Ones got stoploss hit..exit..no questions asked...

We are not smart ones, whose buying will lift the stock..so dont try to be hero..when carnage is going on...

 

[anilnegi]

Anil ji

yes it is very bad thing to average, as a very smart trade narrates an example i.e on a given day you bought a bread which is fresh at that time, now you ate it at home and doesnt found its taste good, thereafter 10-15 days you again goes to that store and ask him for bread from the same lot, which you bought earlier and now in a ..... condition.

just a question , a share is trading around its daily support, now u take it but would it be a good idea to again average in on weekly support area, posting chart

anil negi

 

[S_basavraj]

Any view on DLF?

 

[manishchan]

DLF tanking to life time lows...still some ppl averaging in the hope...
Those who are disciplined will be smiling and rest will only have hope in their pocket...
The 'Too big too fail' finally caught to Indian stock market...The likes of DLF, JPASSOCIATE, SUZLON and etc..etc...the list is will not end...still ppl...want to go for these ones...

This also highlight important of stoploss in your trading plan/system...Ones got stoploss hit..exit..no questions asked...

We are not smart ones, whose buying will lift the stock..so dont try to be hero..when carnage is going on...

Any view on DLF?

Very well said Anil !! :thumb: BTW.... DLF has been in DT for almost 2 months now nd was always a short on daily TF and has been trading below 200 SMA. RSI still pointing down. Big red bar almost at the closing end.. it has all the indication of going further down south.

 

[anil_s_trivedi]

Anil ji

yes it is very bad thing to average, as a very smart trade narrates an example i.e on a given day you bought a bread which is fresh at that time, now you ate it at home and doesnt found its taste good, thereafter 10-15 days you again goes to that store and ask him for bread from the same lot, which you bought earlier and now in a ..... condition.

just a question , a share is trading around its daily support, now u take it but would it be a good idea to again average in on weekly support area, posting chart

anil negi

Dear anilji,

If its in uptrend and Risk fall in your range then its ok. I mean i like to trade suppose, Risk 1% of my portfolio size on any single position. So while averaging if Risk remains same, ok..else you are doing something wrong. As your total risk on that single position will exceed the pain you can afford to.

So while averaging, keeping this things in mind, you will be on your toes. And your emotions will be restricted to act on. As you will see everything will lens of Risk on the table, before going for it.

 

[anil_s_trivedi]

Any view on DLF?

Dear S_basavraj,

Its difficult to say where it will end, as stock broken life time lows. With elliott wave you can count on likely termination, but its all throws possibilities.

IF you are stuck in a short position, better exit with any bounce.

Goldman sachs has added this list in its conviction buy list almost a month back. Now dont know where the conviction came from...this is sad story of indian market. no one is answerable...

Just make it a habit of trading with Risk in mind and act on it. There are always better opportunities elsewhere...

 

[jain.er]

A big egg on GS, they pay their analyst multi million and look what conviction they came up with. And the buy side guys who acted on their recommendation and even worse they are playing with actual money which is not theirs.

Regarding averaging most of the experts do not believe in averaging, but I have slightly contarian view. IMHO there are two situations :

1. You are holding a land mine like DLF with borrowed money or a position in F&O ie you are biting more then you can chew in that scenario its foolhardy to average one has to get out at ones SL levels

2. Situation two; you have bought a fundamentally sound non cyclical business at at OK kind (not obsene) of valuations (subjective though....) Its a delievery buy with your own money and you are comfertable holding it and fundamentals like convincing (for eg. stocks like Private sector banks, IT, FMCG, Pharma, auto stocks and not like real estate, metals and gov policy linked stocks). For these stocks I believe one can average at important support levels and key moving averages specially if the stock is a blue chip or emerging blue chip and if you are in for mid to long term play.

 

[kainiteh]

@Manish,
Its open with Gap and end with deep low, Golden rule repeated again - "Market will reject anything", I hope there should be some recovery , if those volume sold by large FII then Other trader try to average or buy it. Lets stick with set-up.
Regards

 

[anil_s_trivedi]

Any view on DLF?

Dear S-basavraj,

Although, stock in downtrend. And broken of expanding pattern, can also be called expanding wedge. The break is with volume. The horizontal support at 120 also got broken down. Until stock captures this one, its in weak mode in short to intermediate term.

Lower TL support on weekly log coming around 90-95. And will be lowered as each passes by.

This is what seems to be seen on chart right now...

 

[anil_s_trivedi]