Some Good Steals...

[koolprakash]

Hi KP...I had bought some more at lower levels some time ago.
There is a good reason why the bids by some pretty strong players were turned down by Barings recently.
In the mid term I expect pretty good returns on this.
Thanks.

Thanks AMIT.

 

[brewin_vaz]

hi amit

great work on this thread....

i'm currently into technical analysis. learning it from many different sites. its making my understanding of charts much better.

i have looked into Bajaj Hindustan Ltd. if i'm not mistaken its forming an ascending triangle. i expect it to increase by about 30-35 Rs if it breaks out with good volume. on the other hand, it slightly looks like a rising wedge which indicates bearish outlook. what is your comment regarding this?

btw, where do u check up charts on the net?

awaiting your expert comments....

 

[Saint]

Hey saint...thanks there friend, not for this, but for all the great education and wisdom you emit upon this wonderful forum.
Thanks again.

Hi Amit,

Thanks for those kind words.........most appreciated!

Saint

 

[Saint]

Hai Saint,

Can you please advise me on wipro and satyam. Is these stocks are attaractive on the current level ...?


Tom

Hi Tom,

WIPRO is a nice breakout from an ascending triangle on the weekly.......if you caught the breakout,great.It's a HOLD.If planning to enter,just check out how tomorrow turns out to be for the markets and for WIPRO.If it closes the week above 385,the bullish breakout is intact,and buy a pullback for possible higher prices.If on the other hand,Wipro falls to 375,we have a nice negation of the breakout bar.......If so,stay away.So,for now,wait and watch.....and let's see what tomorrow brings for Wipro.

SATYAM :Still in a primary uptrend.......Wait for now till this pullback is done.But if this falls to 560 and thereabouts,keep away for now.

Happy Trading!!
Saint

 

[nkpanjiyar]

Hi Tom,

WIPRO is a nice breakout from an ascending triangle on the weekly.......if you caught the breakout,great.It's a HOLD.If planning to enter,just check out how tomorrow turns out to be for the markets and for WIPRO.If it closes the week above 385,the bullish breakout is intact,and buy a pullback for possible higher prices.If on the other hand,Wipro falls to 375,we have a nice negation of the breakout bar.......If so,stay away.So,for now,wait and watch.....and let's see what tomorrow brings for Wipro.

SATYAM :Still in a primary uptrend.......Wait for now till this pullback is done.But if this falls to 560 and thereabouts,keep away for now.

Happy Trading!!
Saint

Well explained Saint. Thanks.

Well, Need I say anything when the attached chart speaks for itself so well.....
Target - 460
Stop - 375

cheers,
nkpanjiyar

 

[nkpanjiyar]

Bank of India break-out is shown in the attached chart. Gives a target of 145-150. Stop loss is 112.

cheers,
nkpanjiyar

 

[karthikmarar]

Bank of India break-out is shown in the attached chart. Gives a target of 145-150. Stop loss is 112.

cheers,
nkpanjiyar

nk

Thanks for the chart patterns..My opinion is that entering these now has an element of risk.. It is better to confirm the breakout before entry decisionfor all you know breakout may turn out to be a bull trap.The ideal entry will be in the resolution phase of the breakout Let me bring back a part of an illuminating post of Amit on breakout for ready reference

Just my opinionnot trying to sermonize a senior member like you

Warm regards

karthik

Breakouts almost always occur at points of discord and divergence: levels of support and resistance. On either side of these levels, a lot of price action is generated, but no one is quite sure just how much force is required to carry price into a sustainable trend. Any position one takes near a breakout level comes with a fair deal of risk, regardless of how perfect a pattern may appear.
Price action responds in different ways to a breakout. First, it may carry through successfully to higher levels. Second, it may generate whipsaws (volatile and choppy price swings through support or resistance levels), resulting in losses on both sides of the market. Third, it may trap buyers in a false move and start a trend in the opposite direction.
It is believed by some technical analysts that a successful breakout occurs in three phases.
It begins when price breaks through resistance on increased volume. This is called the Action Phase. Price increases by a few points, and then reverses as soon as buying interest fades.
From here begins the Reaction Phase. The market will sell off, and propagate the first pullback, where fresh buyers see a chance to get in close to the breakout price. If everything goes well, a second rally kicks in and raises the price above the initial breakout high.
This marks the Resolution Phase where the price creates new highs.
For the three phases of a breakout to succeed, much depends on certain volume action:
Demand must exceed supply during the initial breakout. Volume should drop sharply during the pullback of the Reaction Phase. And finally, fresh buyers should come in to successfully trigger the Resolution Phase.

A false breakouts occurs when these forces fall out of balance.
Whipsaws will prevail when a breakout can't generate an efficient reaction phase. This failure need not necessarily trigger any major reversal, though the pullback will purge out weak hands and push the price back into resistance.

If there is a good number of buyers in the scrip throughout the choppy price action, they will repeatedly support the price, and as soon as the whipsaw fades out, the price stablises resulting in a loss of volatility.
A voluminous sideways movement in a tight price-band will then come into play, which itself acts as a trigger for a buy signal for the experienced traders. This would then start a bounce up in price to carry it beyond the last high.

Mainly then, once the first lot of buyers enter at the initial breakout point, much depends on the behaviour of the successive hoards of buyers.
A false breakout occurs when this second crowd fails to appear for any reason, whether its a failure to spot the breakout, or a disagreement with the price pattern. Without the support of fresh buyers, the scrip gets stranded in an overbought zone and falls from its own weight.
Hope this will add to the wider understanding of the subject...
Regards.

 

[nkpanjiyar]

nk

Thanks for the chart patterns..My opinion is that entering these now has an element of risk.. It is better to confirm the breakout before entry decisionfor all you know breakout may turn out to be a bull trap.The ideal entry will be in the resolution phase of the breakout Let me bring back a part of an illuminating post of Amit on breakout for ready reference

Just my opinionnot trying to sermonize a senior member like you

Warm regards

karthik

Dear Karthik,

Point well taken. Thanks. There is nothing like "sermonize a senior member like you". I do not agree with your this statement. Friend this is what a healthy discussion. All members have equal right in asking, agreeing and raising concern, Karthik you are most welcome.

Thanks,
nkpanjiyar

 

[karthikmarar]

Dear nk

Thanks. Find enclosed the latest charts of BOI and Wipro.

regards

karthik

 

[AMITBE]

Hi Karthik and NK...thanks for the interesting discussion here.
Always welcome...and please do more often!