I can help you with stock chart reading

usha · #**621** 6th July 2006, 08:27 PM

Quote:

Originally Posted by aca_trader

First of all, It was not cynical. However, I beg pardon if anybody feels so.
Secondly it was a comment on the expectation of excess returns which was inherently built into the question.

Ummh,
expectation of excess returns? ofcourse what far we all trade or invest? pl.observe the brackets and rolly eyes which apparently suggest what is "inherently built into the question".

Best wishes for good{expected} returns friend,
usha

usha · #**622** 6th July 2006, 08:36 PM

Quote:

Originally Posted by vvonteru

Is it 25,000 or 2,50,000. If it is 25,000, I would suggest you going for mutual funds.

You need enough capital to withstand drawdown. This is more important if your timeframe is long term. You will not have the luxury of taking out the trade when it goes bad like the short term players. If you are long term, if the trades goes down, you might consider buying in more rather than taking out. So, you need more money. Minimum 5,00,000. More is better.

halo vv,
Thanks. No it is not 2,50,000 and it is at present 25,000/only. I just wanted to invest my gift money in some shares, and the usual way of KVP, bank deposits....

oh! meee, a prestigious member of a great trading group like our traderji, 'thought I can invest more wisely, but you made me to sit up and rethink. (have already mentioned my thanks, so no I won't repeat it

)
bye
usha

mainak · #**623** 6th July 2006, 08:49 PM

Hi VV,
Wanted to know the prospect of Mawana Sugar in short term. I have 30 @ Rs81.00. Why I bought..here r the reasons:

1. Goldman Sachs purchased around 3 lac shares of this coupple of days back @ 79.
2. With monsoons coming I felt the sugar stocks r ready to move north.

Can you please let me know whther I should hold or get out of this stock.

(just for reference I hav emade good profit in couple of shares ..HFCL & INDSWIFT LTD..based on Goldman Sachs pattern of accumulation>..

Thanks in adavnce
Mainak

vvonteru · #**624** 6th July 2006, 09:12 PM

Usha,

Normally (in a ideal situation), everyone (should) start(s) with mutual funds. Put your hard earned money in the funds. Contribute monthly. When enough money accumulates, use that money to buy stocks. If you lose, atleast you will be losing what you made in mutual funds, not your hard earned money.

Research on mutual funds that return > 15%. Pick company (that manages mutual fund) with reputation and history. Given India's growth story, select funds that give you exposure from high to medium risk. Distribute the percentage based on your comfortability.

The key is not putting all the money in the fund at a time. You have to add monthly. You will be using Cost Averaging advantage. So, do not add 25,000 at a time. Split the money to add on a monthly basis. Once 25,000 is over, continue to add more money monthly.

Quote:

Originally Posted by mainak

Hi VV,
Wanted to know the prospect of Mawana Sugar in short term. I have 30 @ Rs81.00. Why I bought..here r the reasons:

1. Goldman Sachs purchased around 3 lac shares of this coupple of days back @ 79.
2. With monsoons coming I felt the sugar stocks r ready to move north.

Can you please let me know whther I should hold or get out of this stock.

(just for reference I hav emade good profit in couple of shares ..HFCL & INDSWIFT LTD..based on Goldman Sachs pattern of accumulation>..

Thanks in adavnce
Mainak

Mawana Sugar is exhibiting a pattern called Fish Hook. In the recent book by Elder, he mentioned that he likes to trade this pattern. The confusion is your reason to buy. You used fundamental reason to buy. But, you are looking for a technical reason to sell.

Technically, you could buy this stock if
1. It takes out 2 days high. or
2. If the Slow Stochastic crosses up and MACD does not cross down

I will look to sell the stock if
1. Takes out my stop based on 3 * ATR, if I used point 1 to buy.
2. If MACD crosses down, if I used point 2 above to buy.

See, when you enter a stock, you need an exit strategy. An entry will never determine whether you make a loss or profit. An exit will!!!. Inspite of this information, most of us only concentrate on Entry than Exit.

Having said the above, I will take this trade based on positive MACD, coming out of divergence. From here on, it depends on the general market condition. If the market continues to go up, you could see this stock going up from pull back.

vvonteru · #**625** 6th July 2006, 10:08 PM

Sector Information:
See the attached charts.
Sectors that are doing good:
1. IT (Leaders - Satyam, Infosys, Wipro, TCS)
2. OILGAS (Reliance)

Sectors that are OK:
3. Metals

Sectors that are still lying down:
All the others including
1. BANKS
2. AUTO
3. Consumer Durables
4. Capital Goods
5. Health Care
6. MIDCAP
7. SMALLCAP

For looking at the indexes:
http://charting.bseindia.com/charting/index.asp

Market:
Overall, market is still in transition stage. Except some leaders, most of the stocks are down. This can be seen through MIDCAP and SMALLCAP index. Only exception has been IT and Oil sectors. So, trade cautiously in sectors that are performing better.

shethharsh · #**626** 6th July 2006, 10:59 PM

Hey vvonteru ,

I entered Marksans Pharma at 105 ( bought 1500 shares) and since then the stock went upto 130 levels and came back to 110 and around . I purely selected this stock fundamentally . Could you please tell me what levels should i exit . and what should be my stop - loss .

Harsh Sheth

vvonteru · #**627** 6th July 2006, 11:15 PM

Quote:

Originally Posted by shethharsh

Hey vvonteru ,

I entered Marksans Pharma at 105 ( bought 1500 shares) and since then the stock went upto 130 levels and came back to 110 and around . I purely selected this stock fundamentally . Could you please tell me what levels should i exit . and what should be my stop - loss .

Harsh Sheth

Try stop below low of June 5 - Today (I think below trade day June 8 or June 14). Also, exit when MACD crosses down, considering that you entered because it crossed up. Profit: If the stock goes up, move the stop up. Trail the stop by atleast Rs15.

myloginid · #**628** 7th July 2006, 12:37 AM

Hi vv,

What are your comments about about these stocks
Graphite India
Financial Technologies
Emco transformers
MIRC
United Phosphorous

Manish

mahmeds2000 · #**629** 7th July 2006, 12:42 AM

Quote:

Originally Posted by vvonteru

1. mercator lines
-- Touching the point where it started. If you are already there, hang on. Does stop make sense here. What would be the objective of this stop?

No new buying.

2. naga arjun fertilser and chemical
-- Same story. Its a dog. Market is in transition stage. If it takes off, then these dogs will fly. If not, they will stay low to the ground.

3. energy development cmpny ltd
-- This is better than previous two stocks. It is in trading range and had false breakout previously. Hopefully this time, it will take off. If you bought into this, I would have stop underneath the trading range below 28.

Do not buy any of these stocks. The bull market is no to fly these dogs along with. Wait the market to pass the transition. If the bull market continues, then consider these low priced stocks. Until then, if you can't keep your hands off, consider below leaders.

1. Reliance (Wait for pull back)
2. ITC (I don't like the V pattern with a narray channel. How long this pattern can continue?)
3. Dabur (Nice Pull back. Ready for entry.)
4. RelCapital (Enter above last 8 days high)
5. Wipro (Nice pull back. Ready for entry)
6. SatyamComp (Wait for 1 more day before entering)
7. Infosys (Wait for 1 or 2 days before entering)
8. Amarajabat (Enter about 6 days high).
9. Colgate ( I would have liked for it pull back more. But, still ok to enter).

These are the stocks I have been following. I did not run the scan recently. If I get more, I will add to the list.

Hi vv,
Thanks for the alernative calls. I also want to buy ambuja cement how is the stock at current level. It is showing some movement from last one week but i don't know better to buy or not.

Ahmed

vvonteru · #**630** 7th July 2006, 01:49 AM

Quote:

Originally Posted by mahmeds2000

Hi vv,
Thanks for the alernative calls. I also want to buy ambuja cement how is the stock at current level. It is showing some movement from last one week but i don't know better to buy or not.

Ahmed

Looks good. Wait for it to pull back.

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