I can help you with stock chart reading

[vvonteru]

Hello,

i entered the following stocks a week ago at the following price..

1. JP Hydro @ Rs 39.20
2. Essar oil @ Rs 74.45
3. RCVL @ 337

What is your views and suggestion on this stocks.Shd i hold or exit and at wht levels shd i make an exit.your fast reply would be much appreciated.

Thanks
Mohammed Bin Haid

1. JP Hydro @ Rs 39.20
-- Pulled back into the previous trading range. Not good. Typically, U should have got out at this point. Lowest it ever went was 27. Currently, it is 33.30. So, Ur stop will be 27. But, how close is 27 from zero?

2. Essar oil @ Rs 74.45
-- Lets have a stop at 55.

3. RCVL @ 337
-- Current price 306. The stock is at a point of inflection. If it goes below 300, it will pull in to previous trading range. So, ideally, I would like 300 as stop. But, I would give it more room with stop at 295 or even 290, depending on Ur confortability. U are treading on thin ice here.

Please use discretion on stops based on confirtability and money management plan.

 

[mohdbinhaid]

1. JP Hydro @ Rs 39.20
-- Get back to on this

2. Essar oil @ Rs 74.45
-- Lets have a stop at 55.

3. RCVL @ 337
-- Current price 306. The stock is at a point of inflection. If it goes below 300, it will pull in to previous trading range. So, ideally, I would like 300 as stop. But, I would give it more room with stop at 295 or even 290, depending on Ur confortability. U are treading on thin ice here.

Please use discretion on stops based on confirtability and money management plan.

Hello,

Thanks a lot for your prompt reply.

regards
Mohammed Bin Haid

 

[vvonteru]

Market and affected Sector Charts attached. Most hit sectors are metal and oilgas.

 

[punterji]

Hi Vonteru,

I entered Hindalco at 231 some time back. It went up to 252 after that and its now trading at 209. What do you forsee about this stock. What should be my stoploss. Is there any further downfall?

Thanks,
Vijay

 

[vvonteru]

Hi Vonteru,

I entered Hindalco at 231 some time back. It went up to 252 after that and its now trading at 209. What do you forsee about this stock. What should be my stoploss. Is there any further downfall?

Thanks,
Vijay

U should have got out by 220. The trend is broken severely. There will be more selling as people will try to get out. Ofcourse, this is just my view based on TA. Give it another chance till 200. Please get out at this level.

For All:
Remember, We can always make money. But, never make adjustments on how We do business. What I mean is, never move stops. If we do and lose money, we are not just losing money. we will lose confidence. This will affect the outcome of decisions on other positions.

 

[pnbalaji]

Can you please tell me if TFCILTD has formed a double bottom?. Is it safe to enter now?.
Scrip - Tourism finance corporation of india
Code - TFCILTD.NS
-- Avoid the stock. Still in downtrend. Draw a line joining points 24, 20, 17. Further, avoid cherry picking in the current market. I don't know whether U read about my anology of falling from steps. If U have not, here it is.

Imagine U have fallen from 10 steps. U are trying to recover. U are about to get up. But, U see this gush of wind in the proportion of cyclone. Can U guess what will happen to U. Will U get up or fall down. If U do fall down, how long will it take to get up again after that hit.

Hi VV,

Great explanation as always. Thanks for your time.

Thanks,
Balaji.

 

[alok]

A bunch of good posts by you Vvonteru... nice.

At this time of nifty crackdown, one should look for less affected sectors like.. real estate, construction, FMCG and possibly sugar....

Vvon, can you tell me about Gammon, Aditya Birla Nuvo and BEML with respect to the current scenario!

Thanks.

 

[punterji]

Thank you very much vonteru.

Vijay

U should have got out by 220. The trend is broken severely. There will be more selling as people will try to get out. Ofcourse, this is just my view based on TA. Give it another chance till 200. Please get out at this level.

For All:
Remember, We can always make money. But, never make adjustments on how We do business. What I mean is, never move stops. If we do and lose money, we are not just losing money. we will lose confidence. This will affect the outcome of decisions on other positions.

 

[pnbalaji]

Hi VV,

Can you please tell me how Dabur is looking?. Scrip code is DABUR.NS. I have been holding it from 86 Rs and yesterday it reached a high of 173 and dropped down to 153. Can I continue to hold for book profits at current level?

Thanks,
Balaji.

 

[vvonteru]

Hi VV,

Can you please tell me how Dabur is looking?. Scrip code is DABUR.NS. I have been holding it from 86 Rs and yesterday it reached a high of 173 and dropped down to 153. Can I continue to hold for book profits at current level?

Thanks,
Balaji.

Give it a stop of 150. Today, it gained 6 points. It may have 1 or 2 more updays. When it does, please take your partial profits. This thing is going down. Its a matter of time. And others too. Please book partial profits. When in doubt (at this point in market, I have few doubts), do it partially. This will help U to get partially right or wrong rather than the whole position.


Market Commentary:
What I didn't want to happen, it happened. The markets trend line is broken. We are in for correction. I will hold this view, till it comes back to the trend line or forms another trend. But, I sincerely suspect. Market is going to setup for First Thrust pattern. Meaning, selling follows by more selling. At some point, it will be in oversold condition. Then, there may be couple of days of buying, which will be followed by more selling (by those who missed selling now). Given this view, I suggest avoid buying till we see better conditions in market.