Unitech Futures

Hi,

I shorted Unitech Futures at 83.90 ... current price is 90.50 .... Should I hold or cover it at loss?

Thanks.

Unitech is in Buy mode. CMP is 88.75(f). The technical indicators show strong bias in favour of upmove. Possibility of price breakout to 97.6 as show in table below. The Trend shows 93% chance of upmove in the next 10 days, and is following SB call given on 03/08/10. Yesterday a good bit of Open Int. was added to this stock. So I think you should put a stoploss on your position right away.

Hi ... Now Unitech has reached 82.50 ... does this mean that the charting thing does not work? ... or it happens with few stocks ...

Thanks,
Rockk

Hi Rockk,

The "charting thing" works with its own limitations. First, it works with "dead" data by which I mean it tries to extrapolate with data that is already "past" to predict what will happen in the future - whether in the next one hour, one day to one month. So it cannot take into account breaking news event or some company related story.

In case of Unitech, while other stocks have gone up, it has gone down thereby giving you a much better exit now (in case you are still holding). This is because Unitech has been removed from MSCI India Index. There are privileged few who are privy to the news before you and I from "aam janata" so we are always the last to know. That is true everywhere, and cannot be completed eliminated. There is no such thing as "total transparency" - unfortunate fact of life.
Paresh