My First Analysis…GAIL

Luckytrader · #1 5th May 2007, 06:33 PM

Hi Friends,

This is my first analysis with a very little knowledge about it (F.A & T.A).

Comments / views are always welcome.

Fundamental:
Financial results for the quarter / year ended on March 31, 2007 and recommendation of Final Dividend on the Equity Shares of the Company, for the financial year ended 2006-07 will be declared on Tuesday May 8th 2007.

GAIL to invest more funds in Dabhol ---Latest news.

Technical:

Look at the attachment Chart –

• OBV trend is up….

• Volume is increasing as FY results are near …

• You can see BUY Signal is given according to Parabolic SAR indicator around 300

• SMA is above EMA a good sign.

• Only negative is that William % is at -11.21, i.e. overbought.

But, what my view is that it is overbought maybe bcz its results will be positive.

Target above 320

What are your views?

Regards,
Luckytrader

RSI · #2 5th May 2007, 07:33 PM

What is the stop loss? What is the risk reward ratio? This can be calculated once the stop loss is decided. Parabolic SAR in your chart shows stop loss at Rs. 282/- Is the risk reward ratio (risk nearly Rs. 30/-, reward Rs. 10/-) worth the trade? Actually the last swing bottom is just around Rs. 279/-, so it would be prudent to place stop slightly below that swing bottom may be at Rs. 274.50/- or below Rs. 278/- on closing basis. But will the trade be worth with such a risk reward ratio?

This is not to discourage either you or your analytical capabilities. Just my views. You can make it to the top. All of us will commit errors and only on committing errors we learn.
Keep trying.
Regards
R. S. Iyer

javedind7 · #3 6th May 2007, 12:23 AM

Hello Friend,

How are you.

I have stuck in futures of ESSAROIL bought @ Rs 59.35 & PFC bought @ Rs123.85 .Please guide me for further deals in it,i.e. to hold or sell them.Also please let me know how to get Meta stock 10 so that I can also take advantge of it.

Thanks

Javed.........

Linus · #4 6th May 2007, 12:38 AM

Hi Lucky,

GAIL is a good buy. Why not a chart? I will try to post.

Bye,

ss

hitesh sabharwal · #5 6th May 2007, 12:58 AM

stoploss for any long position on gail lies at 303,if breaks 303 on monday,it will go down to 299 and 295 levels.if trades above 303,keep riding longs.

jaykiru · #6 6th May 2007, 01:03 AM

Hi Lucky
Try to modified your chart .. First breakout of triangle with green line second breakout with first red resistance line now last one resistance at top red trend if break this top red trend line next resistance channel.. near 324 so buy if break top red trend with s.l of first red trend breakout...

RSI its ok as your.. risk reward ratio..??

Regards
Jay

Luckytrader · #7 6th May 2007, 06:30 PM

Quote:

Originally Posted by RSI

What is the stop loss? What is the risk reward ratio? This can be calculated once the stop loss is decided. Parabolic SAR in your chart shows stop loss at Rs. 282/- Is the risk reward ratio (risk nearly Rs. 30/-, reward Rs. 10/-) worth the trade? Actually the last swing bottom is just around Rs. 279/-, so it would be prudent to place stop slightly below that swing bottom may be at Rs. 274.50/- or below Rs. 278/- on closing basis. But will the trade be worth with such a risk reward ratio?

This is not to discourage either you or your analytical capabilities. Just my views. You can make it to the top. All of us will commit errors and only on committing errors we learn.
Keep trying.
Regards
R. S. Iyer

Thanks for correcting me RSI…..

Actually I was little bit confused about stop loss …..

In patterns there are rule for sl but, here I did not found any pattern…..

You have given me a great point of risk & reward ratio, in future I will keep that in mind.

Regards,
Luckytrader

Luckytrader · #8 6th May 2007, 06:33 PM

Quote:

Originally Posted by jaykiru

Hi Lucky
Try to modified your chart .. First breakout of triangle with green line second breakout with first red resistance line now last one resistance at top red trend if break this top red trend line next resistance channel.. near 324 so buy if break top red trend with s.l of first red trend breakout...

RSI its ok as your.. risk reward ratio..??

Regards
Jay

Thanks for modifying the chart & showing me Triangle breakout.

Nice observation…..

Regards,
Luckytrader

Luckytrader · #9 6th May 2007, 06:39 PM

Quote:

Originally Posted by sunil saranjame

Hi Lucky,

GAIL is a good buy. Why not a chart? I will try to post.

Bye,

ss

Hi Sunil,

Waiting for your observations...ofcourse with a chart.

Regards,
Luckytrader.

RSI · #10 6th May 2007, 06:40 PM

Quote:

Originally Posted by Luckytrader

Thanks for correcting me RSI…..

Actually I was little bit confused about stop loss …..

In patterns there are rule for sl but, here I did not found any pattern…..

You have given me a great point of risk & reward ratio, in future I will keep that in mind.

Regards,
Luckytrader

One more point which I omitted to mention in my last post in this thread. Stop loss can be different according to one's risk taking capacity. It can be different depending upon your trade pattern. For example, if you are trading on the basis of trendline, breaking of trendline or just below trendline will be your stop. One gentleman in this thread has drawn a support/resistance line in GAIL chart and showed that your stoploss should be around Rs. 300/-. I have described a stoploss as per swing trade. On the basis of some other technical parameter, it may be somewhere else. But the most important point is that trader must know his risk taking capacity and he must decide stoploss before entering the trade. Then only trader can analyse whether the risk and reward ratio is worth the trade.
Regards
R. S. Iyer

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