I can help you with stock chart reading

[vvonteru]

Hi Vv,
Taking the 8 & 50 EMA buying signal, would you recommend a buy on Dr. Reddy & Ultratech Cements? Or has the stock already gained enough? Have attached the charts. Also attached the Nifty chart ... good days ahead?
Regards
Kuldeep

Having 8 day EMA crossing 50 day EMA satisfies the SETUP condition. That includes the sector action. Wait for Entry i.e., pull back. Lets also wait for the market indexes to cross the recent trading range. There might be slight pull back tomorrow. But, overall indexes are taking time and resisting downfall.

slope of 50 day EMA vs. crossing
-- U can use any strategy as long as you follow it all through for signals. Any setup + entry condition should give more than 50% probability when you test. Because, we don't need to even think to get 50% success. It is either Buy or Short like heads or tails when you flip a coin.

IDBI (Buy or Short)
--Neither. Let it cross trading range between 50 and 60 for considering the stock.

 

[kuldeep49]

VV,
Thanks for the clarification.
Regards
Kuldeep

 

[vvonteru]

Decision Time. Up or Down ?

Sectors Up:
-- Banks (Good Volume. We have 1 day pull back after almost 10 day's of upside)
-- Cement
-- Pharma

Others:
Trading Range like BSE500
Initial leaders like IT are stuck in trading range now.

 

[game4trade]

Hi Vvonteru,

We have seen pullback in GRASIM with low volumes. It is good time to enter or we still wait. Can you please share your view.

Awaiting your response.

Cheers.

 

[vvonteru]

Hi Vvonteru,

We have seen pullback in GRASIM with low volumes. It is good time to enter or we still wait. Can you please share your view.

Awaiting your response.

Cheers.

The fact that the indexes were up inspite of US stocks downward path is encouraging. However, the indexes are still range bound, just stopping at the top of the range. Tomorrow's upward movement will get them out of the range.

So, you have couple of choices. Sit out till the indexes come out of the range. Or, if you don't want to miss in case indexes come out of the range tomorrow, buy stocks at CLOSE + 75% of their ATR (ATR is available in iCharts.in). Logic is, if indexes move up, your stop gets hit and you buy into the stock. If the indexes move downwards, you will not buy into the stock. Stocks in pull back mode:

CIPLA
REDDY LABS
SUN PHARMA
AUROBINDO PHARMA
GRASIM
PNB
ICICIBANK
KOTAKBANK

 

[kenneth]

Set Up: 8 days Ema has not crossed 50 days Ema. Shows early signs of reversal. Stocks to watch.
Ticker Trade Date Close
BAJAJ AUTO - 500490 Buy 02/08/06 2543.30
BOM DYEING - 500020 Buy 02/08/06 534.65
GAMMON INDIA - 509550 Buy 02/08/06 320.05
PRITHVI INFO - 532675 Buy 02/08/06 256.80
RIL COM VEN - 532712 Buy 30/06/06 248.95
TATA CHEM. - 500770 Buy 02/08/06 204.95
ORCHID CHEM - 524372 Buy 02/08/06 180.70
ITC LTD. - 500875 Buy 02/08/06 173.30
GVK POWERINF - 532708 Buy 02/08/06 154.35
IL&FS INVTSM - 532653 Buy 02/08/06 153.90
MAHA.TELE - 500108 Buy 02/08/06 143.65
RK FORGINGS - 532527 Buy 02/08/06 89.30
GRANULES (I) - 532482 Buy 02/08/06 88.20
MUKAND LTD. - 500460 Buy 02/08/06 73.45
STEEL AUTH. - 500113 Buy 02/08/06 70.60
BILPOWER LTD - 531590 Buy 02/08/06 68.05
SHYAM TELEC. - 517411 Buy 24/07/06 60.50
GUJ.NRE COKE - 512579 Buy 02/08/06 58.55
VIRINCHI CON - 532372 Buy 02/08/06 32.50
RAIN CALCING - 532153 Buy 02/08/06 31.85
MERCATOR LIN - 526235 Buy 02/08/06 29.85
BHANSALI ENG - 500052 Buy 02/08/06 26.75
NOCIL - 500730 Buy 02/08/06 19.80

Appreciate your view
Thanks
Ken

 

[vinayak_shet]

sir,
i have 2000 vikas wsp shares which my dad got it long back,but now it is delisted,there was a news that it will get listed soon,so can any one tell me which month it will get listed,and company is also in profit, is it worth to hold it
help me out plz
thanking you
vinayak

 

[vvonteru]

sir,
i have 2000 vikas wsp shares which my dad got it long back,but now it is delisted,there was a news that it will get listed soon,so can any one tell me which month it will get listed,and company is also in profit, is it worth to hold it
help me out plz
thanking you
vinayak

Vinayak,

You should post this as new thread to get all readers attention.


Note on Selection Of Stocks:

One of the problem facing traders is selection of stocks. Rather I would say elimination of stocks to remain with a few for consideration. That is the reason I have strict setup criteria. Why do we need few for consideration. Because, currently my position sizing algorithm lets me have only 3 open positions. So, how do I select 3 stocks from so many. Not that others don't go up. But, I can only expose my capital so much, unless I increase my capital or risk criteria. But, I am only comfortable with the risk I have for the current capital.

The reason I am providing so much verbiage is, you need to customize position sizing algorithm to suit yourself. Some are willing to risk 2% on a trade. I can only do 1%. Some are confortable with swing of 1% capital per day. I am only comfortable with 0.75%. With the variables I have in the Excel sheet, determine how many trades you can have open. Then, have a setup criteria to select the best. If you can trade 10 stocks, your selection criteria must be lenient than mine. Because, a setup criteria must suit the system you have. A setup criteria must end up giving you enough trades to fit your risk criteria. Finally, the amount of profit depends on the frequency and no. of trades with the system you developed.

Kenneth,

Can you give me the best 5 of those to comment on. Add to your setup criteria to limit them to 5. Or if you have to trade, which 5 will you trade.

Market,

Its hanging in the trading range. Either it has no will to beyond the trading range or is waiting for some positive news to get up. BANKS are still doing good.

 

[kenneth]

ThanksVV. Will use the EMA 8-50 Set up and select two or three which I find best to my knowledge.

Regards
Ken

 

[vvonteru]

Vinayak,

You should post this as new thread to get all readers attention.


Note on Selection Of Stocks:

One of the problem facing traders is selection of stocks. Rather I would say elimination of stocks to remain with a few for consideration. That is the reason I have strict setup criteria. Why do we need few for consideration. Because, currently my position sizing algorithm lets me have only 3 open positions. So, how do I select 3 stocks from so many. Not that others don't go up. But, I can only expose my capital so much, unless I increase my capital or risk criteria. But, I am only comfortable with the risk I have for the current capital.

The reason I am providing so much verbiage is, you need to customize position sizing algorithm to suit yourself. Some are willing to risk 2% on a trade. I can only do 1%. Some are confortable with swing of 1% capital per day. I am only comfortable with 0.75%. With the variables I have in the Excel sheet, determine how many trades you can have open. Then, have a setup criteria to select the best. If you can trade 10 stocks, your selection criteria must be lenient than mine. Because, a setup criteria must suit the system you have. A setup criteria must end up giving you enough trades to fit your risk criteria. Finally, the amount of profit depends on the frequency and no. of trades with the system you developed.

Kenneth,

Can you give me the best 5 of those to comment on. Add to your setup criteria to limit them to 5. Or if you have to trade, which 5 will you trade.

Market,

Its hanging in the trading range. Either it has no will to beyond the trading range or is waiting for some positive news to get up. BANKS are still doing good.

Market:

Guys, its the U.S non farm employment report on Friday that makes or breaks things. That is the reason, indexes are hanging on the top of the range, doing nothing.

It will be too late for India to react to U.S news on Friday. It will have to be on Monday. If you want to be active, come up with list of stocks that you want to go long AND short. On Monday, expect a GAP opening in the indexes and stocks. Enter positions intraday. You should get a clue from tomorrow's U.S markets. So, hang in there till Monday.