Some Good Steals...

Looks interesting, Vivek. Is in an intermediate uptrend and coming up a while. If you wish to get on, wait for 32-33 going up with more volume. If a trader in the near term, your s/l then would be 28.50.
Good luck.

Hi Narendra,
Am not sure if you are taking this on along term or a short term basis.If I had bought this at 19.5as a short term play then it pulled back to 20.20 and then took out its previous high.....I would have raised my stop loss to 20.0.Then it makes a lower pivot high,and I am in caution zone.....waiting n watching,am still in the trade unless stopped.My stop therefore remains at 20.If taken out tomorrow,I am out.

On the other hand,if I were in this on a longer term basis,my stop would have been 13.4,trail stopping upwards would have led to stop loss now being at 17.4........

So on alonger term basis,I 'd hold unless stopped.

Saint

Hi Amitbe and Saint,

I have entered ORCHID CHEM at 378 (150 shares) and today its -30%. some say that the stock has been split. I am a new trader. Will I get 300 shares for my 150 shares? will it get doubled. I just saw CNBC today and got panic. Where can I find whether the stock has been split or not?

I just logged into my ICICIDirect account and there are no changes in the number of shares I hold.

please help, I'm pulling my hair out.

Karthik

I don't think there is any need to worry. Orchid has issue bonus shares. I think you will be entitled to 50 bonus shares. So that will make up for the fall in price. Rest you can confirm with your broker

Alok

hi AMITBE
Just to make a point now that MUTUAK FUNDS will be allowed to take positions on FUTURES AND OPTIONS will the cash market be affected turnover will be lower or will be beneficial for small investors who are novices in this field.

regards

Karthik

Orchid Chemicals & Pharmaceuticals Ltd has has issued Bonus Equity Shares in the proportion of one equity share of Rs.10 each for every two equity shares of Rs.10 each. So you will get additional 75 shares. Record date for the purpose of bonus issue will be September 17. Your shares will be credited to your icici account only after this date. There is no need to worry. Normally the price will be adjusted as per the bonus ratio. I have noticed that the prices tend to go down after the issue of bonus/split (... because the pre bonus price goes up in anticipation of the bonus/split..) Normally they bounce back to the pre bonus/split price and tend to go up...(examples Geometric and Hexaware) Little patience is required...Any way rework your S/L and follow the trend...

regards

karthik

Thanks Karthik for answering and explaining.
The price ex bonus factors in the additional scrips in circulation now. The pre-bonus rally is an attempt by the traders to create a margin for the anticipated drop ex bonus to keep things as high as possible. The ongoing uptrend would eventually take the price to pre bonus.
Thanks.

Two technical analysis terms that come up often are Double Top and Double Bottom.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.

The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a ‘u’ shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if it’s a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.

A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
I’m sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, I’d be happy to do it.
So much for now.

Wow Amit

See the diffence.... I just explain...and you explain how things really work.....Please dont mind... I aim to be there soon....

regards

karthik

Hello Amit!

Wow that was very Informative......
When time permits do please post the Double bottom explanation too.....

Regards

Roneeth