Some Good Steals...

Exactly Supra, I do follow stops at times and at times not, looking at technicals and fundamentals both. Perhaps if one knows what one is doing, it works out in the end.
Another reason I don't pull stops everytime the market tanks is most of my entries are thankfully at lower levels taken early in the breakouts and I wait for the move to run out, even if it takes a few months. I've found this to be the most profitable way. I hold about a dozen positions or more at any given time, and even if a few slip below the entry I hold knowing where it's at technically and on fundamentals. Yes, losses have been booked from time to time, but I quickly come in on another one and it more than makes up.

On your query, and of some other friends here, I'll come back later in the evening if it's ok?
Thanks and regards.

Hi amit,

i had entered visual soft yesterday at 239...it support at 230-231 (like u had mentioned) was taken out, but i'm still holding...its results are also due in a week....is it a hold? or should i wait some more.

Regards,

Dheeraj M

Hi Supra...I'm sure you have done your research on this, but it worries me to see strong counters lose steam so sharply in the thick of the results season.
Another case in point is Gateway which has lost sharply too. Were they over valued, or do the players have inside information, I wonder. Or are the operators selling out to come in and make a killing in the up direction...
On technicals Areva on today's close at 339 is resting above a strong support at 336. Below this the next major supports are at 330 and 324. 321 and 318 are strong levels too. Should the plunge continue, it could bottom out at 318 or 312.
Twice in the recent past it has fallen from 385 off levels to the 335 area, but in both sequences it was on diminishing volume. This second time round the trajectory is sharper though.
To the immediate up there is much congestion. Important levels in this direction are 342-346-351-357-360. It should begin to gather steam above 357-360-367.
As you are going to track this counter, I have given all these levels. They are all important support and resistance points in either direction.
The chart on daily readings shows volatility above 340 to 380 plus.
Do update when you like.
All the best.

Babysteps, as you said, you live and you learn.
Firstly when a stock breaks out at 525 off and hits 760 in just five sessions, that's pushing it. How far could it really go, especially when making the climb from 700 to 760 on decreasing volume. It was way overbought.
The result season can be treacherous for those relatively new in the markets.
Information is leaked a few days ahead. Those in the know buy in hard, and sell equally hard just when the media is going gaga as the results break, and the experts are projecting future earnings etc etc. The unsuspecting buyers chasing the runaway stock are left holding the baby. In most cases of pre result big moves, the expected news is factored in.
The rule the market follows is, buy in anticipation of news and sell as it breaks.
Never chase, never ever. And if trapped high, pull the stop and exit fast.

To take this to an important subjet, there has been some talk on pulling stop-loss triggers or not, trding discipline, trading methodology etc, today.
All of this amounts to assembly-line kind of trading as far as I am concerned.
What has to be understood here is that there is no unmindfulness involved here, nor even-handedness. The issue is of objectivity with the bigger picture in place.
The rule of the thumb is, exit when in loss. It's a fool-proof rule which never fails to benefit the trader.
But there are exceptions to all rules, whether position sizing or risk/reward ratios or what have you, and while I have always disliked being a rigid stickler for rules, how sensibly one defies the rules, or how blindly one follows them, sets apart the sensible from the foolish.
If I had been holding Shree Renuka from 300-350 levels, I may have sold a little, but I would still be holding most of my position in the descent from 760 to 704, knowing that I would hold for at least one more quarter and knowing I had a great entry, and also knowing which support I could safely hold till.
But if I had entered at 550-600 knowing how fast and high it was moving, I would have exited somewhere at the start of the drop even if I wanted in for another quarter. I would have tracked it, looked for an opening lower down, and re-entered.
If I had entered low sensing a big move looking at the velocity of the move and volume, I would have bought in hard in one go, and I would still have held position even if the international markets were tanking and our own running weak, and even if I was in the red, I would have held for being aware of the bigger picture: That fundamentally the main trend is bullish here and elsewhere and the weakness is temporary, and the position itself is on a sure winner with a great entry, where lesser amongst the sector are running too. I would still have held position too, for knowing that I am personally sitting on handsome profits in several running trades, and so my risk factor overall can be stretched long.
So here it would appear that I am not a hard nosed, cold-blooded disciplinarian...and I am not.
I love to play from the heart, I love to break rules, but only and only if it makes sense to do so, and only if I know what I am doing.

So...in your case, I would not have bought in, and if in, would have bailed out much higher.
However with the damage being done, it's not an easy call at this point even if it's your own call whether to book losses or hold in agony till a turnaround.
On technicals there is not enough data on Shree Renuka, being a new listing.
If you are going to hold, I can attempt to give a couple of support areas using my material and data here. It's the same stuff used for the Nifty every day.
690-695 is one. Then 680 to 675 to 667.
To the up, a close above 717-722-727 could bring it close to your price.

Do get back if you need further clarification, and please don't mind the the discussion above, as it's not directed at you in particular, but generally for those who read these postings and are looking for different perspectives on trading.
Good luck.

Hi Saint,

Would like to know the the future prospects of these companies. I am looking for a 3-month horizon.

1. BSEL Infrastructure
2. Diamond Cables
3. Monnet Ispat
4. DCM Shriram Industries
5. RTS Power Corporation &
6. G M Breweries

Thanks,
Sanjoy

On Visualsoft, since I had come in much lower the stop for me is 220-223.
Don't hold it if this goes, as those come in at 237 would find this deep enough where 231 would have been it.
Dinkerj, your list is long and will come to it later.
Thanks.

Thank you. Ya, my list is very long.

Hi Amit,

Is it advisable to get into sugar sector stocks like Dhar sugar, kotari sugar rana sugar at this point of time?

Regards,

Dheeraj M

Hi Dheeraj, from November going forward 180 days is the crushing season for sugar units. So they are in the thick of action now.
The world sugar prices are said to be up this year.
So yes, the sugar stocks are the pick of the season.
More profits would get reflected in the March April results, even if they may be factored into the prices now.
Look them up and see.
As they are mostly all quite up already, track your favourite ones to seek entry on declines.
If you come across anything with levels etc, do run them by here.
All the best.

Hi Amit,

Am plannin to get into Gateway cmp -260 odd AND ORCHID CMP-260.

GATEWAY LOOKS GOOD WITH A FY06 PE OF AROUND 25..IF THE GROWTH IS ANYTHINGOT BY..WE MITE 40% RETURNS INA THE NEXT YEA..WHATS UR CALL SHUD I GET IN...JUS ONE WORRY IS EQUITY DILUTION THRU GDR ISSUES..(THEY VE PRICED THOSE AT RS.235/-) !!!!WHATS UR CALL

ORCHID LOOKS GOOD..HAS TURNED IN SM GOOD NOS ALSO...

LET ME KNOW..AM STIL HOLDIN ONTO CUMMINS INDIA..AND WELSPUN INDIA..THINK NOS SHUB GUD FOR BOTH OF THEM THIS QUARTER..

THNAKS
GAURAV