Stocks To Keep A Close Eye On

[chaitanyagoa]

If you observe, even after 2 times of mark-down, the volume still did not increase!
The first mark-down was at opening, 300 pts down within first 5 mins, and the next that came in afternoon, about 600 pts down. Inspite of 2 attempts to shake-out, the volume did not increase to above the volume of the last 2 sessions. This seems a positive indication to the "smart money" that supply has been removed and it can markup the prices with ease without worrying about someone selling into their buying.

Hey bunny,

What did u mean by the statements above?:confused Can u elaborate it please?

Thanks

 

[chaitanyagoa]

Good Evening Bunny,

Thanks for ur kind reply. But brother if i may ask u for a favour, pls take out some of ur precious time in the future and teach me how to read these charts.

I m totally new to share market so i m not so confident bout many things. But then i'll learn fast. hope u'll help.

Regards,

SUMEET

Hey Mehr,

Read the Saint's "Teach a man to fish". most of us have learnt reading charts from there.... Dump me your email Id and i wills end it to you.

 

[Mehr]

Hi Chitanya,

I did download tht book sometime back but never read it. Probably I shud.

Thanks n Regards

SUMEET

Hey Mehr,

Read the Saint's "Teach a man to fish". most of us have learnt reading charts from there.... Dump me your email Id and i wills end it to you.

 

[bunny]

Hey bunny,

What did u mean by the statements above?:confused Can u elaborate it please?

Thanks

Hi Chaitanya,
Think of volume as effort, and price action as result.
Thus for any large move(result) in any direction, you will need large volume(effort).

To bring the price down, you need either selling pressure or lack of demand.
Similarly, to move the price up, you either need demand or lack of supply.

Now, if the professional wants a rally, any selling into it(supply) will spoil the rally. So to make sure that supply is reduced, they try to "shake out" the shares from hands of weak holders like us and buy them. This helps in creating a supply-demand gap and the stock soon starts moving up. The shorts start covering their positions, the "herd" flocks to buy it, thus adding to the demand. This is the whole game.

From this you can infer that if volume is reducing as the price is going up(2 bars), you can comfortably tale a short position as the price is sure to reverse.

Similarly, when prices are falling on reducing volumes, you know that the selling pressure is reducing and soon you will find a long entry point.

Now, about those two statements in the previous post:
The professionals know that they getting anyone to sell their shares is not an easy task, especially when they are expecting higher prices. So they have to create some "fear" and panic everybody. So they just need a reason. For Today, China's index loss was enough a reason. Someday its monsoon worries, etc. Bear in mind that professionals are influential and they can manipulate many things - Ex: they can time the release of a "bad news".

The first markdown was within first five minutes with SENSEX losing 350 pts. Weak holders panicked and sold out their shares(and strong holders bought it). Just to make sure that supply has really reduced, one more markdown around afternoon was done to about -600 pts. This caused even the optimistic ones to panic and sell their shares.

So at the end of the day we closed in red. Now are the professionals REALLY interested in selling shares? To find out we take a look at the volume. The volume is not so great. Just in case you want to compare, compare it with the budget day volume. A huge drop in price is accompanied with the volume spiking over the previous 2 bars. This is a strong signal of professionals interested in selling! And you know very we cannot go against the professionals

 

[bunny]

@ Chaitanya,
Another volume-effort observation:
On any chart of your choice, observe the volume under reversal and retractions - It high under reversal bars but low under retraction bars. This fits in properly with the physics law that you need enough force to change the direction. Like, you need enough volume to change the direction of the trend.

 

[bunny]

@ Chaitanya,
Another volume-effort observation:
On any chart of your choice, observe the volume under reversal and retractions - It high under reversal bars but low under retraction bars. This fits in properly with the physics law that you need enough force to change the direction. Like, you need enough volume to change the direction of the trend.

 

[SavantGarde]

Hi Rangarajan,

While I Have Not Been Able To See The Chart, But Just Wanted To Let You Know That PETRONET Has Given A Buy Trigger

Happy & Safer Investing

SavantGarde

Savant,

Could you pl comment on Petronet technically explaining the price & vol trade based on 14th.
Stock traded on 14th at high vol,closed +ve,but today closed below its sup at 69.
I entered the stock today at an average of 71,with 74-76 as tgt.Is it worth holding or more downside in store.
I am more interested in learning yr intrepretation of the chart esp 14th for my future guidance

Best of luck,

ranga

 

[talisman]

Bunny,
You are doing a great job. I sincerely appreciate your efforts of explaining things in such a detailed way.

Keep going. We are thoroughly relishing it.

Regards,

 

[SavantGarde]

Hi Sumeet,

You Can Perhaps Little Bit Of Money In KSOILS & PETRONET, Since You Already Have IFCI, You May BUY A Little More For A Week Or So & SELL The New Purchase Next Week Sometime.

Happy & Safer Investing

SavantGarde

Good Evening Savant Ji,

I m still waiting for ur kind reply.
Moreover after the correction today and Dow down by 174 points right now, do u think tomm wud c another correction.
Any other gud share to invest for a few months... pls guide...
I read bout FSL in some posts and people really think it is a gud share to invest in.. Wud request for ur thoughts on this share.

Regards,

SUMEET

 

[talisman]

Hi Rangarajan,

While I Have Not Been Able To See The Chart, But Just Wanted To Let You Know That PETRONET Has Given A Buy Trigger

Happy & Safer Investing

SavantGarde

Savant Ji,

I have all the stocks in my portfolio in accordance with triggers given in chapter two. Most of the stocks' prices are near the purchase price little +, - here and there. I also took BVCL the hour when you had first given the signal of accumulating it. However, BVCL and TVS Motors have gone down much below the purchase price. Should I buy some more?

Regards,