I can help you with stock chart reading

nilesh78 · #**721** 18th July 2006, 11:07 AM

Hi VV,
I would like to know your view on Drreddy & Punjlloyd.
Punj lloyd is moving downwards from last couple of weeks.
Regards,
Nilesh

vvonteru · #**722** 18th July 2006, 06:10 PM

Quote:

Originally Posted by ramakrishnaiah

SBI is trading at <700 levels.. Is it a good time to enter from 2-3 months term?

Also, Suzlon tanked yesterday and is trading weak today as well. Has it entered a bearish phase?

I wouldn't touch banks. I wouldn't go long until Sunsex takes out recent double top. We can consider going long if Sunsex finds support and goes for trading range. Lets wait for couple more weeks to get the picture. In any case, stay away from banks unless you want to short. They crossed down 1 month low support.

Suzlon
-- Hopefully, you did not buy into it directly. The buy point I suggested did not get triggered. You can use this way of buying to avoid some pitfalls. The stock slightly recovered today. 8 day EMA crossed down 50 day EMA. If it recovers further, I would go short on it (depending on general market). When it recovers, get out of the stock.

Ranbaxy
-- Major support at 350 is broken. You have more supports at 300, 250. After that, it is were the stock has started. Breaking 350 does not bode well to the stock. So, technically it is bearish. If the general market recovers, we can hope better. But, 350 support (now resistance) is the key.

Cipla
-- Cipla is doing better. MACD is positive. Again, depends on market direction. If market changes direction and goes up, this stock will be first to follow.

Drreddy
-- Watch out for 1140 month low resistance. If that breaks, then we are going for 1000. Consider getting out if the stock decisively (not daily noise) takes out 1140. For idea, look at Ranbaxy.

Punjlloyd
-- In a good market, the MACD of this stock would make a buy into this stock. Not now. The stock never recovered in the last month, like the major indexes. If indexes fall down, then what happens to this stock is anybody's guess. Look at MACD for clues. Right now MACD histogram is positive, showing the June-July's downtrend did not keep up with May's mayhem.

ramakrishnaiah · #**723** 19th July 2006, 02:05 PM

Thanks Vvonteru,

I did not enter Suzlon as the price point you suggested for entry was not triggered

. Thank you for the excellent analysis.

SBI, I felt from fundamentals perspective is attractive. But you are right. The market is completely negative about banking right now.

But I got into Reliance at 1007. But looks like there is trend reversal in Reliance as well

. We are seeing consecutive lows. What should be my stoploss?

Satyam is tanking ahead of its quarterly numbers in opposite to Infy/TCS.. Is there some negative news on that. I entered at 691 and am holding out. What should be my stop loss on this as well?

Again, Thanks for the great suggestions, I have become a huge fan of your analysis.

vvonteru · #**724** 19th July 2006, 05:51 PM

Quote:

Originally Posted by ramakrishnaiah

Thanks Vvonteru,

I did not enter Suzlon as the price point you suggested for entry was not triggered

. Thank you for the excellent analysis.

SBI, I felt from fundamentals perspective is attractive. But you are right. The market is completely negative about banking right now.

But I got into Reliance at 1007. But looks like there is trend reversal in Reliance as well

. We are seeing consecutive lows. What should be my stoploss?

Satyam is tanking ahead of its quarterly numbers in opposite to Infy/TCS.. Is there some negative news on that. I entered at 691 and am holding out. What should be my stop loss on this as well?

Again, Thanks for the great suggestions, I have become a huge fan of your analysis.

Reliance:
Near to take it out. I have Chandelier exit as 975. Below the close base is 960.

Satyam:
I think you are near to take it out. 650 is what I got for stop loss. This is also below previous base.

Summary:
1. Sensex ended slightly above 10000. This is psychological point. There might be some attempt to rally here. If it does happen, try to get out. If things appear better, we can come back in.
2. In other case, if stop points hit, take your loses. Taking a loss is also making money. Because, if you don't take loss, you will be making more loss to your capital as your stop got hit for a reason.
3. Next time, before you enter, have a stop loss. Don't move this stop down once you have it. Stop should only move up. Even if you had it wrong initially.

Czar · #**725** 19th July 2006, 06:11 PM

sir after 5 black candles i covered my shorts & went a tad long do you think it would be good to re-enter shorts on the over sold rally ? what would be a good entry point for shorts...

vvonteru · #**726** 19th July 2006, 07:20 PM

Quote:

Originally Posted by Czar

sir after 5 black candles i covered my shorts & went a tad long do you think it would be good to re-enter shorts on the over sold rally ? what would be a good entry point for shorts...

Based on oscillators (RSI, Williams, Stocastics ....), still it is not oversold. Around 45 for RSI. Still worse is MACD crossing down with histogram negative. There is a chance to attempt to go up after 5 days down. But, thats daily noise. Overall, the trend down is confirmed. Lets consider Down as long as MACD is negative.

Do not open new short positions now. You shouldn't have covered shorts either. The downside just started. However, it depends on your trading strategy. My strategy is to get lot of gains with less number of trades taken and higher risk. Another strategy may be to get lot of winning trades with small gains and smaller risk. Either is fine as long as U fine tune it with no. of trades taken and consistency with risk.

Czar · #**727** 19th July 2006, 08:46 PM

thought so, thanks your wisdom... but it gets a little uncomfortable holding shorts with 5 consecutive down days as the pull backs are rather sharp...

pranayd · #**728** 19th July 2006, 08:58 PM

Quote:

Originally Posted by Czar

thought so, thanks your wisdom... but it gets a little uncomfortable holding shorts with 5 consecutive down days as the pull backs are rather sharp...

Hi Czar,

My question might be a bit stupid for most of you seniors, but wanted to understand if one can short stocks overnight. Can I short sell a stock today and sell it five days later? Am I missing something here?

Pranay

Czar · #**729** 19th July 2006, 09:03 PM

Pranay: dint get what you're asking mate...

no you can only sell futures & carry forward if i understand you right

dinkerj · #**730** 19th July 2006, 09:10 PM

Quote:

Originally Posted by Czar

Pranay: dint get what you're asking mate...

no you can only sell futures & carry forward if i understand you right

Hi Czar, So I too take opportunity to ask something.
I never traded options.Today i tried on icicidirect, but they have two types of trades- good till day, IOC. They dont accept IOC orders.I didnt buy as I thought good till day means valid for one day only. (contradicting my theoretical knowledge).
Can you pls throw some light, if possible giving example of icicidirect?

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