DLN calls

[pkapadia]

Hello rkkarnani,

Am not sure what you mean by "partial narrowing" but i feel that the mkt is feeling the effect of spurt in liquidity. Nifty has to cross 5150 spot for the trend to turn overtly +ve for me.

Both TECHM and TATASTEEL followed our scripts so that's good. As I write this, TECHM is at 726 (fut) after hitting 727.6 hi so far; and TATASTEEL is at 474.5 (fut) after hitting 478.5.

TATASTEEL R1/R2 are at 477.3/483.15 (spot).
TECHM R1/R2 are at 721.05/726.8 (spot).

TATASTEEL is showing bearish hangman, and also being an index stock is more likely to show profit booking. So when it next spurts up to 483 again, one can short it with a stoploss at 490. If it stays above 490, it can go up to 526 also so you have to quick and nimble to book profits.

BANKINDIA, the perennial short, is good to short between 335-337 with a stoploss at 338. You could book profits below 330.

Please note that while the prices discussed are always spot prices, one has to adjust for future prices accordingly to be precise.

 

[rkkarnani]

Hello rkkarnani,

Am not sure what you mean by "partial narrowing" but i feel that the mkt is feeling the effect of spurt in liquidity. Nifty has to cross 5150 spot for the trend to turn overtly +ve for me.

Both TECHM and TATASTEEL followed our scripts so that's good. As I write this, TECHM is at 726 (fut) after hitting 727.6 hi so far; and TATASTEEL is at 474.5 (fut) after hitting 478.5.

TATASTEEL R1/R2 are at 477.3/483.15 (spot).
TECHM R1/R2 are at 721.05/726.8 (spot).

TATASTEEL is showing bearish hangman, and also being an index stock is more likely to show profit booking. So when it next spurts up to 483 again, one can short it with a stoploss at 490. If it stays above 490, it can go up to 526 also so you have to quick and nimble to book profits.

BANKINDIA, the perennial short, is good to short between 335-337 with a stoploss at 338. You could book profits below 330.

Please note that while the prices discussed are always spot prices, one has to adjust for future prices accordingly to be precise.

I was talking about the Nifty Discount "Narrowing" only!!! Thanks for your input on Tata Steel.

 

[rkkarnani]

PK, Kindly increase the size of your fonts please!!!

 

[pkapadia]

ok, here's the latest in large fonts.

Since Nifty has touched 5140 already, i was looking for shorting opportunity.
So I'll stick my neck out and give my shorting call.

I have shorted WIPRO at 646 (fut) since it is running at rs. 6 discount, 30-mt candle looks ready to dip, still in Sell mode and reversing from area between R1/R2 which are 650/657.5. The HI right now is at 653.95.

Not comfortable providing targets since I feel it is "personal." Keep adjusting stoploss and maximise profits is my motto.

Aha, CNBC is talking about WIPRO promoters being in talks to sell 7% stake etc. Let's see how it pans out.

 

[rkkarnani]

PK, The discount you see in Spot and Wipro is because of Rs.6/- dividend. The record date is 16th June. Take care.

 

[pkapadia]

Financial technologies

FINANTECH has given a Strong Sell call two days in a row. This is unusual. And these calls come after a series of Sell calls in the previous days. The chart also shows breakdown. It is taking support at 1200(spot), and DLN shows a Bullish Harami candle.

One should wait for the candle to be played out on Monday sometime, and short Aug between 1235 and 1240 with a tight stoploss at 1265. The prices are Future prices. If Monday opening is +ve, wait till it reaches higher levels, and then short.

Wish I had the guts to keep my TATASTEEL shorted at 543.80(fut) level which was when spot hit 542 Major Resistance. Although I covered near the close of the market, I expect further downside to 525 levels on -ve open.

Another very volatile stock is APIL. If there is a gap down opening on Monday, buy Aug Futures between 702 to 710 levels (stoploss at 694), for a rebound to 728 again. Please note that a better stoploss as given in Business Line last Monday is 679. APIL is in Strong Buy mode, and is expected to hit 765 in August. Be forewarned that it is a very volatile stock and is not to be shorted. If you are patient you should be rewarded.

I hope DLN members are trying out the new software interface program they are advertising on their site. It is free to use for 30 days, and then 199 p.m. after that. I find it extremely useful because it keeps a history database of prior calls, and allows one-click download of DLN data in to your watchlist. Plus their stock search is ten times better than DLN's imho.

This thread was started by me to know how other members use DLN data. I have been a longtime member and it's taken sometime to learn to interpret their calls properly. If you buy just because they say SB or sell because they say SS, then chances are you'd lose money....UNLESS you understand Entry/Exit points.

Hopefully more members will start writing here their experiences.

 

[pkapadia]

Looking for shorting opportunities??

HINDALCO (Aug) S @ 161.5 S/L at 164. Why?
DLN S or hold till 259.6 (spot) Aug fut at 0.40 discount. AND, more importantly, has a BR Hangman candle. Since the stock has already touched R1 and retreating, it's a good bet to short.

btw, FINANTECH has played out our scenario beautifully so far. That is also a short as discussed before.

 

[pkapadia]

Well, HINDALCO hit the stoploss. Guess I should have taken into account the fact that its board is meeting today and Qrtrly results will be declared. So we need to wait until after today.

FINANTECH is holding below 1250 continuously for several days, but DLN has now given SB call which means that one has to relinquish the short position at an appropriate time to minimise loss. Fortunately, it gives plenty opportunities to get out in time. Now we need to wait until it either breaks out above 1265 to go long, or breaks below 1200 to go short. It has already dipped once in the past week below 1200. Now it's wait and watch.

APIL is holding 714 level nicely so far, but has formed BR HM candle. This means that we get a chance to buy at lower level again 702 or 695. Please note that Maj. Resist. is showing 760 levels which is also the target given in Business Line so I am still bullish in this scrip.

 

[pkapadia]

Finantech

Here's a look at FINANTECH for the past several days. Except for one whipsaw day when it got a SB call, it remains in Sell mode, and has not yet crossed our stoploss of 1265. With a bearish candle today, makes it worth holding on to your short. The first target clearly is 1130 levels. I welcome other views on its DLN history data which is shown in the attached file. The prices shown in the file are spot prices.

http://img833.imageshack.us/img833/8443/finantech.png

I hope this file is readable.

 

[pkapadia]

APIL hit 748.65 as I write this. Those who are holding their buys have their patience rewarded. There is still more upside to this stock, so one should trade more cautiously now...