NIITTECH Flag pattern TradingApproaching oversold conditions on the weekly graph.
TA also suggests signs of next wave formation.
Although, recent acquisitions could give a boost in the perceived value by the market.(Arago and Cast)
Hit the top resistance and retraced back ~22%.
wait for the channel breakout(green)
and trade in the flag pattern. watch out for the resistance marked in red.
I will update on the next price movement. and targets if it stays in the channel.
Bseindia
Pioneer Distilleries BO above 255 , can trade long as weekly charts shows bullish crossover on aroon indicator.
India GlycoBroken out of bullish pennant pattern and aroon crossover on weekly chart confirms bullish trend . long with tgt of 1000 in next 12-18 months can be easily attained.
AJANTA PHARMA - BEARISH PATTERN FORMATION AJANTA PHARMA
CMP 1365
TARGET 1130
STOP 1450
H&S bearish pattern formation observed.
GLENMARK Next Move(Mid Term Opportunity)RSI Depicting oversold conditions. strong support at ~520.
approaching crossover on a weekly scale. Strong Signs of an upcoming Bull run.
Take Profits:
640
730
900
1045
HDFC Bank - Short CallA beautiful short opportunity in HDFC Bank with stop @ 1951 and target of 1750-1800 for first week of JUNE.
Sudarshan Chemicals - Bullish breakout observedSudarshan Chemicals
CMP 507.
Target 600 plus
Stop 425.
Weekly chart -
A sort of ascending triangle breakout observed with good volumes.
Highly rewarding if held with patience.
Bajaj Auto - Bearish pictureBajaj Auto
CMP 2773.
Breached an important support line in the weekly chart.
Can move towards 2550 in the coming days/ weeks.
Strategy is to short this counter on every rise.
Stop should be initially at 2875 and should be gradually trailed.
LGBROSLTD - High probability bullish setup observed.LGBROSLTD
CMP 1220.
Target 1700 plus
Stop 1100
Weekly chart
Stock has broken out of the cup pattern which is more visible in daily chart.
Stock has broken above convincingly the long term upward sloping trend channel. Upper boundary should ideally act as a support going forward.
Expected target is 1700 plus which is 50% of the width of the channel.
Stop is 1100 which is previous resistance based support.
Bajaj FinservSuch clarity in charts in such markets , just makes this stock on a good investment idea for next 5 yrs. stockdada.com
DILIP BUILDCON - BULLISH SIGNDBL
CMP 1114
Target 1280 plus
Stop 960.
Daily Chart
1) Stock has bounced back convincingly after a long period of cup based consolidation.
2) Stock has also bounced back from 30 day ema support.
3) Relative Strength bounces back from support.
Strategy
Aggressive traders can buy at CMP.
Conservative traders can buy at possible retracements around 1170 to 1115 levels; but should be prepared to miss out if rally continues without retracement.
Target 1280 plus and Stop at 960.
Pfizer - Target 2700-2800 in 10 MonthsPfizer, probably the only pharma company in India that is going to make a new high. The pharma sector in India is in a bear territory for the last couple of years. Having found a stock in this sector that is yet to make a top is like finding light in the dark. It's good news for those who have significant exposure in this sector. It's not going to do much for them but something is better than nothing. But one must get rid of this stock as soon as it touches the level of 2700-2800, do not get optimistic when it does that. I repeat do not hold it beyond those levels.It will be too risky. When time is up, it's UP !
RBL BANK - SHORTING OPPORTUNITYRBL BANK
CMP 467
TARGET 402
STOP 500
WEEKLY CHART
1) LH and LL formation observed.
2) Stock has broken the strong long term support zone at 475-485
3) Relative strength shows weakening signs of stock.
HINDALCO - A SHORTING OPPORTUNITY
Hindalco
CMP 220
Target 180
Stop 237
APART FROM THE TRADE SETUP, I HAVE ALSO EXPLAINED THE MOST IMPORTANT ASPECT WHICH IS POSITION SIZING AND RISK MANAGEMENT.
THIS FORMS 80% OF A TRADING STRATEGY AND THE BALANCE 20% IS THE TRADING SETUP. FOLLOWING THIS WILL INCREASE THE PROBABILITY OF SUCCESS IN TRADING BUSINESS.
Higher time frame (weekly).
1) Stock has breached 30 ema.
2) Stock has breached the previous weekly support zone of 220.
3) Falling RS confirms the beginning of a possible downtrend for this stock.
4) Next weekly support zone is 180.
Intermediate time frame (daily)
1) Stock has breached 200 ema.
2) Stock has also breached the support zone with good volumes.
3) MACD / RS etc are pointing towards a possible continuation of downtrend.
Lower time frame (hourly) - Trade entry time frame
1) Wait for the price to come to the value zone which is between 20 ema and 30 ema.
2) Once the price is into the value zone, next step is to watch out for a trigger to enter a short position. Trigger is a bearish candle which could potentially be identified by confirming stochastic 533 crossunder above 50. In all probability that should rest somewhere around 229-230 making it as the ideal entry point for a short trade.
Position sizing and Risk mgmt:
1) Assuming trading capital of Rs 10 lacs.
2) Assuming risk appetite is 5% of trading capital, which is Rs 50,000.
3) NRML Margin required for this trade = Rs 1 lac.
4) Loss willing to accept as per stop loss = (Stop price - Entry price) X Lot size = (225-237)*3500 = Rs 42,000. Since this is less than the risk appetite, ie item 4, this trade is ACCPETABLE.
5) In other words,
Risk appetite = Rs 50,000
Entry point = Rs 225
Stop = Rs 239
Risk = Rs 14 per 1 stock (not 1 lot).
Number of stocks permitted to enter as per risk appetite = 50,000 / 14 = 3571.
Futures standard lot size = 3500
Since futures lot size is less than no. of stocks permitted to trade, this trade is ACCEPTABLE.
Hence, no. of lots permitted to trade with a capital of Rs 10 lacs is 1.
Exact capital required to trade this setup = Risk X lot size X no. of lots / Risk appetite % = 14 X 3500 X 1 / 5% = Rs 9.8 lacs.
ie, FOR EACH LOT AS PER THE RISK APPETITE OF 5% OF TRADING CAPITAL, RS 9.8 LACS IS REQUIRED AS TRADING CAPITAL.
CANARA BANK - POTENTIAL SHORTING CANDIDATECANARA BANK
CMP 235
Target 180
Stop 270
Weekly Chart
Stock has convincingly broken down an important support zone at 249, which could potentially act as a resistance zone going forward.
Stock could possibly retest the new resistance zone, which ideally is a shorting opportunity.
Hence, shorting suggested at levels 245-249 with a stop of 270 for a target of 180.
ALKEM - BULLISH STRUCTUREALKEM
CMP 2217
Target 2700 plus
Stop 2100
Weekly chart
Stock has formed a Cup and Handle pattern.
Stock is on the verge of breakout of the handle.
Ideal level to go long on the stock would be after getting confirmation of breakout of the cup lip which is at 2350.
IDFC - SHORT AT EVERY RISEIDFC CMP 49
TARGET 35
STOP 59
Monthly Chart:
1) Series of LHs and LLs reflects a bearish big picture on this stock.
Weekly Chart :
1) Stock has breached 200 period ema at around 55-57 and post consolidation for several weeks has breached previous swing low at 50.
Daily Chart :
1) Stock has breached 200 day ema at around 54 and had formed a bearish triangular pattern before breaking towards 49.
2) Stock could retrace back to 50-51 levels on account of some shorts getting covered, which could be the ideal level to go short in this stock.
All levels spot. Please adjust for futures.
Monthly chart displayed. Weekly and daily chart can be verified for the above commentary.
Tata Motors - Bright / Not Bright - Short term shortingTata Motors - the stock is treading lower with every passing week and will continue to do so until November of this year. What has to be seen is the price level.We are expecting around 280, however, the carnage could take it lower, depends on how hard the FII are involved in the selling. But we believe the low of Feb 2016 @ 266.00 should not be broken. Because if it does then the future of Tata Motors is bleak for coming 6-7 years. And in my personal opinion Tata Group is the best Indian company with least to no manipulation of its stock prices.
