Trading Strategies Using Technical Analysis

[SwingKing]

Hello Raunak sir,

Yesterday I was disconnected immediately after my last post here because of internet problem so I could not enjoy the move of DISH. Probably it is moving against the market trend. now. ChampalFert also moving up.

Sir, I was thinking of a move in Tatasteel and it seems that you were not that confident about the up move or were seeing a down move. Yeah.. it is moving down now with the market. (Actually I made my mind to add a 10% on Tata Steel yesterday but.... the internet connection..

Can you please tell me how you looked on to the script that probably gave you the correct scene.. I cant believe that it was just your intuition.

Thank you,

With Regards
Gangadharan:clapping:

Wow.. Dish is 70 plus till I finish this post:thumb:

Gangadharan,

I am not Bearish on Tata Steel. I am Bullish on it and Hindalco. But my view is a little bit on wider time frame. For me, till Tata steel remains above 600, it is going to make money. Now, whether it visits 600 first and then moves to 700 or directly moves to 700 from here is something difficult to comment on. This is precisely why I told you that if you are sure of immediate up move, then go for it. I can give you a wider term view but short term is always difficult to comment on.

You are right that its not pure intuition. The answer lies in the fact that I always look at long term view. For me that view of Bullishness remain intact till it is above 590-605.

Tc

 

[gangadharan]

Friends,

I am going to enter a new area of option writing. The Strategy I am going to check initialy is to write both putt and call option... 5400 put option and 6000 call option.

I will do it on retracements.

Take Care.
Gangadharan.

Hi,

Hi Sold Call at 76 and Put at 35.... total premium received 111.. Let us see what happens. It is on single lot as trial basis.

Gangadharan

market is too volatile . why to write options now ? i am not even having base knowledge in options...

Sir,

If you want to trade in options, the wonderful way is to write options in a safe way because there you will get a support from time decay... yes you can buy options in second and third week of the months....... if you have a 99.9 % clue about the market movements..

And this is the option writers earn more than 90% trades. Hence I am doing it on trial basis and the maximum profit in this is 111 points I received as both of the put and call options will expire 0.00 value if the market is somewhere above 5500 and below 6000 on expiry. You will get N number of chances to come out from this trade with a profit of 20% if you feel like.
Ask your broker regarding writing the options they will discourage you and they will tell you to buy options.

Take Care.
Gangadharan

But in last 10 days I think option writers suffering a lot

People still buying CE 6000...

All the best to you in your new venture of option writing...

Cheers!

Selling option is good in rangebound market.
Now a days its too volitile hence try buying options in pair...
My today's trade
Buy 5700PE@80 & 5900CE@113 total= 193
Square 5700PE@130 5900CE@87 total= 207
net gain 14points

Buy 5700PE@119 & 5800CE@125 total= 244
Square 5700PE@119 5900CE@139 total= 258
net gain 14points

Assuming one lot investment ~11k & gain Rs 1400 (14+14points) So net of 12.7% ROI.

Dear Gauharjk.

How can some one sell when there is no buyers... those who are buying is in the expectation of that NIFTY corrected about 500 points and it is time to recover....... Ok, now this sentiment of retail investors are required for the biggies to short...... The big part of revenue coming to all the leading brokers are from Big Investors..... you may call them FII. DII.. HNI.. or anything. But finely the losers are the retail investors who trade in a lesser time frame.

So even if we are low profile traders....... we have to learn thinking like biggies.

best of luck.
Gangadharan

Hello Friends,

I am still holding the position on the above trade and now with a 35 plus % of profit.... Still I will wait till the expiry because I am learning put writing and the trade is only on single lot.

Thanks to all of you.

With Regards.
Gangadharan.
TREND IS YOUR FRIEND TILL IT SHOWS YOU A BEND...... BUT THOSE WHO WORRIED ABOUT THE BEND WILL NEVER EARN TILL THE END....(Hypothicated to Raunak Sir)

 

[gangadharan]

Gangadharan,

I am not Bearish on Tata Steel. I am Bullish on it and Hindalco. But my view is a little bit on wider time frame. For me, till Tata steel remains above 600, it is going to make money. Now, whether it visits 600 first and then moves to 700 or directly moves to 700 from here is something difficult to comment on. This is precisely why I told you that if you are sure of immediate up move, then go for it. I can give you a wider term view but short term is always difficult to comment on.

You are right that its not pure intuition. The answer lies in the fact that I always look at long term view. For me that view of Bullishness remain intact till it is above 590-605.

Tc

Thank you Sir,

So..... If Tata Steel dare to touch 590 levels again.... I will surely double my position..

With Regards,
Gangadharan

 

[JackPotter]

Gangadharan,

Let me put it this way.

If Dish Tv remains above 52-57, you are going to sell it above 100 in the next one year, which is about 40% appreciation from here.

Tc

Raunak bhai,

Could you please explain the reasons of you remaining bullish on Dish TV?
I looked at its P&L account and found that it's a loss making company. The EPS has been in negative since many years. Book value of the share is just Rs. 3.76. Hence, the CMP is already more than 18 times high of the book value. Much of its income is from financial activities which is a bad sign for a company whose focus should be anything but investments in the market.

Only reason I can think in support of your analysis is that there has been little increase in the FIIs holding.

However, I still believe that this stock may crash below Rs. 40 levels anytime.

With all due respect,

itsmemad.

 

[SwingKing]

Raunak bhai,

Could you please explain the reasons of you remaining bullish on Dish TV?
I looked at its P&L account and found that it's a loss making company. The EPS has been in negative since many years. Book value of the share is just Rs. 3.76. Hence, the CMP is already more than 18 times high of the book value. Much of its income is from financial activities which is a bad sign for a company whose focus should be anything but investments in the market.

Only reason I can think in support of your analysis is that there has been little increase in the FIIs holding.

However, I still believe that this stock may crash below Rs. 40 levels anytime.

With all due respect,

itsmemad.

Itsmemad,

First of all good to see someone analyzing companies on these grounds. Keep up with it. Now, the reason I am Bullish on Dish is due to the price structure of stock, increase in FII holding and Business model of the company.

Dish Tv has a business model similar to that of Virgin (UK). The kind of Business that Dish is into, usually has Balance sheets like what you have described. Hence, I am not too much worried about that. So, in case the stock has to collapse to 40 or much lower, it has to go through our stop loss price and hence it will be exited. We were long in Dish since levels of 41 and at our SL of 55, we would still pocket a decent return. Untill then, this stock will continue to head higher.

Tc

 

[gmdriyaz]

hi Raunak,
what is dragon pattern or dragon formation?
is nifty formed the same today intraday?
can u throw some light on this?
thanks
gmdriyaz

 

[gangadharan]

Hi All,

This is already 11.20 now.... (Why I say it is. ...... I believe 11.O-clock is a crucial point in market hours.)

The market(SPOT-NIFTY) may perform as range bound in yesterdays level till the Europe opens and then try to move to any of the sides.

Any way it have a resistance at 6011 levels.

please see charts.http://img707.imageshack.us/img707/897/niftyeod151210.jpg
http://img535.imageshack.us/img535/3443/niftyintraday151210.jpg

Regards.
Gangadhran

 

[SwingKing]

hi Raunak,
what is dragon pattern or dragon formation?
is nifty formed the same today intraday?
can u throw some light on this?
thanks
gmdriyaz

Gmdriyaz,

I am unaware of such patterns.

As it is I don't trade based on any pattern.

Tc

 

[SwingKing]

Will be exiting DLF on next retracement. Somewhere around 285-286.

Will also be offline for some hours now. Any queries posted will be answered in the Evening.

Tc

 

[gangadharan]

hi Raunak,
what is dragon pattern or dragon formation?
is nifty formed the same today intraday?
can u throw some light on this?
thanks
gmdriyaz

Hi Friend,

Dragon patterns are just like other patterns and usually formed on market bottoms..... similar to W or double bottom patterns... and traded with the support of particular rules. The beautifulness of this pattern is...... it works in almost all time frames.......

Just go through the below mentioned link and master it.
http://www.scribd.com/doc/8331452/Dragon-Pattern

With Regards,
Gangadharan:thumb: