I can help you with stock chart reading

[mainak]

Hi VV,
Wanted to know the prospect of Mawana Sugar in short term. I have 30 @ Rs81.00. Why I bought..here r the reasons:

1. Goldman Sachs purchased around 3 lac shares of this coupple of days back @ 79.
2. With monsoons coming I felt the sugar stocks r ready to move north.

Can you please let me know whther I should hold or get out of this stock.

(just for reference I hav emade good profit in couple of shares ..HFCL & INDSWIFT LTD..based on Goldman Sachs pattern of accumulation>..

Thanks in adavnce
Mainak

 

[vvonteru]

Usha,

Normally (in a ideal situation), everyone (should) start(s) with mutual funds. Put your hard earned money in the funds. Contribute monthly. When enough money accumulates, use that money to buy stocks. If you lose, atleast you will be losing what you made in mutual funds, not your hard earned money.

Research on mutual funds that return > 15%. Pick company (that manages mutual fund) with reputation and history. Given India's growth story, select funds that give you exposure from high to medium risk. Distribute the percentage based on your comfortability.

The key is not putting all the money in the fund at a time. You have to add monthly. You will be using Cost Averaging advantage. So, do not add 25,000 at a time. Split the money to add on a monthly basis. Once 25,000 is over, continue to add more money monthly.

Hi VV,
Wanted to know the prospect of Mawana Sugar in short term. I have 30 @ Rs81.00. Why I bought..here r the reasons:

1. Goldman Sachs purchased around 3 lac shares of this coupple of days back @ 79.
2. With monsoons coming I felt the sugar stocks r ready to move north.

Can you please let me know whther I should hold or get out of this stock.

(just for reference I hav emade good profit in couple of shares ..HFCL & INDSWIFT LTD..based on Goldman Sachs pattern of accumulation>..

Thanks in adavnce
Mainak

Mawana Sugar is exhibiting a pattern called Fish Hook. In the recent book by Elder, he mentioned that he likes to trade this pattern. The confusion is your reason to buy. You used fundamental reason to buy. But, you are looking for a technical reason to sell.

Technically, you could buy this stock if
1. It takes out 2 days high. or
2. If the Slow Stochastic crosses up and MACD does not cross down

I will look to sell the stock if
1. Takes out my stop based on 3 * ATR, if I used point 1 to buy.
2. If MACD crosses down, if I used point 2 above to buy.

See, when you enter a stock, you need an exit strategy. An entry will never determine whether you make a loss or profit. An exit will!!!. Inspite of this information, most of us only concentrate on Entry than Exit.

Having said the above, I will take this trade based on positive MACD, coming out of divergence. From here on, it depends on the general market condition. If the market continues to go up, you could see this stock going up from pull back.

 

[vvonteru]

Sector Information:
See the attached charts.
Sectors that are doing good:
1. IT (Leaders - Satyam, Infosys, Wipro, TCS)
2. OILGAS (Reliance)

Sectors that are OK:
3. Metals

Sectors that are still lying down:
All the others including
1. BANKS
2. AUTO
3. Consumer Durables
4. Capital Goods
5. Health Care
6. MIDCAP
7. SMALLCAP

For looking at the indexes:
http://charting.bseindia.com/charting/index.asp

Market:
Overall, market is still in transition stage. Except some leaders, most of the stocks are down. This can be seen through MIDCAP and SMALLCAP index. Only exception has been IT and Oil sectors. So, trade cautiously in sectors that are performing better.

 

[shethharsh]

Hey vvonteru ,

I entered Marksans Pharma at 105 ( bought 1500 shares) and since then the stock went upto 130 levels and came back to 110 and around . I purely selected this stock fundamentally . Could you please tell me what levels should i exit . and what should be my stop - loss .


Harsh Sheth

 

[vvonteru]

Hey vvonteru ,

I entered Marksans Pharma at 105 ( bought 1500 shares) and since then the stock went upto 130 levels and came back to 110 and around . I purely selected this stock fundamentally . Could you please tell me what levels should i exit . and what should be my stop - loss .


Harsh Sheth

Try stop below low of June 5 - Today (I think below trade day June 8 or June 14). Also, exit when MACD crosses down, considering that you entered because it crossed up. Profit: If the stock goes up, move the stop up. Trail the stop by atleast Rs15.

 

[myloginid]

Hi vv,

What are your comments about about these stocks
Graphite India
Financial Technologies
Emco transformers
MIRC
United Phosphorous

Manish

 

[mahmeds2000]

1. mercator lines
-- Touching the point where it started. If you are already there, hang on. Does stop make sense here. What would be the objective of this stop?

No new buying.

2. naga arjun fertilser and chemical
-- Same story. Its a dog. Market is in transition stage. If it takes off, then these dogs will fly. If not, they will stay low to the ground.

3. energy development cmpny ltd
-- This is better than previous two stocks. It is in trading range and had false breakout previously. Hopefully this time, it will take off. If you bought into this, I would have stop underneath the trading range below 28.

Do not buy any of these stocks. The bull market is no to fly these dogs along with. Wait the market to pass the transition. If the bull market continues, then consider these low priced stocks. Until then, if you can't keep your hands off, consider below leaders.

1. Reliance (Wait for pull back)
2. ITC (I don't like the V pattern with a narray channel. How long this pattern can continue?)
3. Dabur (Nice Pull back. Ready for entry.)
4. RelCapital (Enter above last 8 days high)
5. Wipro (Nice pull back. Ready for entry)
6. SatyamComp (Wait for 1 more day before entering)
7. Infosys (Wait for 1 or 2 days before entering)
8. Amarajabat (Enter about 6 days high).
9. Colgate ( I would have liked for it pull back more. But, still ok to enter).

These are the stocks I have been following. I did not run the scan recently. If I get more, I will add to the list.

Hi vv,
Thanks for the alernative calls. I also want to buy ambuja cement how is the stock at current level. It is showing some movement from last one week but i don't know better to buy or not.

Ahmed

 

[vvonteru]

Hi vv,
Thanks for the alernative calls. I also want to buy ambuja cement how is the stock at current level. It is showing some movement from last one week but i don't know better to buy or not.

Ahmed

Looks good. Wait for it to pull back.

 

[vvonteru]

Hi vv,

What are your comments about about these stocks
Graphite India
Financial Technologies
Emco transformers
MIRC
United Phosphorous

Manish

Graphite India
-- Avoid for now.

Financial Technologies
-- Same chart as above. Compare these charts to MIDCAP and SMALLCAP sector charts. They are all still down. Wait for them to go up like the BSE500 before you buy.

Emco transformers
-- Same chart as above two stocks.

MIRC
-- Avoid this stock by all means.

United Phosphorous
-- Failed double bottom. MACD crossed down. Avoid.

None of the stocks are interesting. Some are in transition stage, like the general overall market. Wait for couple of weeks more to see the actual market trend before jumping in any of the transition stocks.

 

[alok]

Dear VVonteru,

Thanks a lot for all the above explaination and suggestions to the members.. Its really nice to read and learn the fundas....

I am sure members are not only clarifying their doubts but also learning the things.

Great Going Vvonteru...

Alok.