Stocks To Keep A Close Eye On

[lovable_guy006]

Nifty is likely to continue its uptrend

Nifty consolidated within a range with a positive bias during last week and tested 4,675 level on the lower side and 4,844 level on the upper side on the back of mixed global cues. At present, Nifty is trading slightly above its 200 days exponential moving average on the daily charts, which is expected to provide it a strong support. The technical indicators are still supporting its upward move and hence it is likely to continue its uptrend in the coming week as well. But, it needs to breach its immediate resistance at 4,850 in order to move higher. Nifty has generated a buy signal as per the Parabolic SAR (shown in a dotted line) by crossing above the upper SAR. Its MACD is about to give a buy signal by crossing above the signal line and RSI is at 42 levels which is also suggesting an upward move. Global markets movement will also remain the key factor in deciding the trend for Indian market. Upside 4,850 is the immediate major resistance for Nifty and if this level is breached, an upward move until 5,000 can be expected. Downside, it can test 4,600 levels if the crucial 4,750 support level is breached.

 

[enygma]

Re: Stocks To Keep A Close Eye On - Chapter II

One last attempt from my side - can we all leave this thread alone for Anant, Uma and Savant to continue their work? I am sure there are lots of other threads or people can start their own threads to put forth their views.

Thanks,
Enygma.

 

[lovable_guy006]

Re: Stocks To Keep A Close Eye On - Chapter II

Ok guys no hurts but as some of the members dont want me to post in this thread i will not do it from today !!! Will continue to appreciate the good work done by senior members !!!

Thank you !!! You all were very supportive !!!

 

[lokesh1212]

Re: Stocks To Keep A Close Eye On - Chapter II

Lovable guy - you need a thread for yourself and that should be made a sticky. I am looking forward to reading your views, getting 441% returns and take home some of the money that FIIs have.

(A few crores will be enough.......for now )

 

[Mangafreakz]

Re: Stocks To Keep A Close Eye On - Chapter II

Ok guys no hurts but as some of the members dont want me to post in this thread i will not do it from today !!! Will continue to appreciate the good work done by senior members !!!

Thank you !!! You all were very supportive !!!

Why should you stop posting Lovable guy , all your posts are educative and are of quality.
This thread was started by SG , specfifically to track all the Buy triggers by him and Anant sir and Uma. All the other posts were moved by SG himself to the mother thread "Stocks To Keep A Close Eye On" as he was the moderator and could move posts. You can always post the charts in the main thread or like another member said always better to have your own thread mate

 

[vssoma]

Re: Stocks To Keep A Close Eye On - Chapter II

lovable guy....please start a new thread and post your views regularly....

Why should you stop posting Lovable guy , all your posts are educative and are of quality.
This thread was started by SG , specfifically to track all the Buy triggers by him and Anant sir and Uma. All the other posts were moved by SG himself to the mother thread "Stocks To Keep A Close Eye On" as he was the moderator and could move posts. You can always post the charts in the main thread or like another member said always better to have your own thread mate

 

[tvrssvk]

Re: Stocks To Keep A Close Eye On - Chapter II

Ananthji,

Please correct me if I am wrong.....

I see that the risk/reward ratio of the triggers are almost 1:1.2. In case if we win the trade (omit trail stops) also, we will be in loss or breakeven(brokerage+tax).

Kindly clarify me.....

 

[Rkji]

 

[aryabhai]

Dear Rishi,

None of the links for trading organizer appear to work. Please check.

Aryabhai

 

[asnavale]

Re: Stocks To Keep A Close Eye On - Chapter II

Ananthji,

Please correct me if I am wrong.....

I see that the risk/reward ratio of the triggers are almost 1:1.2. In case if we win the trade (omit trail stops) also, we will be in loss or breakeven(brokerage+tax).

Kindly clarify me.....

Hi,

You are right with respect to the initial Tgt and SL. The ratio is 1:1.2 because of the calculation of Tgt/SL involved in arriving at these figures for the first time. Let me show the mathematics which is very simple:

Let SL be the stoploss.

Then the target is calculated as 2 times the high minus SL. Therefore,

TGT = 2 X H - SL.

You are calculating P/L based on CMP. Therefore,

LOSS = CMP - SL

PROFIT = TGT - CMP

Therefore, the RR ratio is:

RR = (TGT - CMP) / (CMP - SL)

RR = (2 X H - SL - CMP) / (CMP - SL)

Now, 2 X H is higher than 2 X CMP Therefore,

RR > (2 X CMP - SL - CMP) / (CMP - SL)

RR > (CMP - SL) / (CMP - SL) > 1

Therefore, The RR is > 1 and the factor by which it exceeds 1 works out nearly 0.2 and therefore the RR is 1 : 1.2 approximately for all triggers. But as the targets are achieved and new targets and SL are set the RR increases well beyond 1.2. You can see from the Excel sheet, generally, when first SL is hit the loss is about 10%. In the same Excel Sheet you can also see that when second or higher targets are reached the profits are sometimes more than 100% also.

Now coming to profit on first target, it is not break even or loss. As you have calculated the Reward is about 1.2, the profit is therefore 10%. The overheads (Brokerage, STT etc.) for both legs together will not be more than 1%. Generally, the overheads are about 0.5% for a trade. For Some brokers like ICICI it is about 0.7 to 0.75% per trade. So it would be about 1.5% overall. So, you still make a profit of at lease 8% to 9%.

-Anant