Some Good Steals...

Hi Joshi, here is a recent link to a reply on Polaris: http://www.traderji.com/36048-post3119.html
I personally would not recommend a buy here but since it has made a bit of a move watch and hold with s/l posted in the link. Where is the sense in getting into these kind of counters where so so many are just going through the roof?! With the kind of poor form this has been in, how far can it go.
All the best.

Hold this for as long as you can and buy at declines. Stop at 68.
All the best.

Hi Rahul, feeling much better and with the rest days coming up, should be fine. Thanks for asking.
Nice move on Pratappur today closing 140.
Hold with 133 stop. The next level is 125 and you may find this deep but it's there.
All the best.

Hi Amit,

Picked up Ambuja Cement at 100 with strict price stop of 97. At the present trend it looks to reach 108 but the volume trading is too high. It is very volatile today.

Need to look any divergence or reversal coming soon. I am sure once it goes down it will reach levels of 90. But at present condition it seems the momentum will keep going.

Its great that u take out lot of time from urself and reply to each of the thread. Hats off to u. We are missing Saint

Keep coming to chat even , got to tease karthik uncle a lot

Regards
Raj

Hi Hari, just this afternoon had written this on GTL.
Well the good move came later today, up almost 14% at 121.60 on 40 lakh volume closing close to the day's high of 122.80.
125-128-131 need to be delt with for 140 all time high zone.
All the best.

Hi Partha, a nice chart you have recognised in Paramount.
Obviously there is an ascending triangle taking shape here.
As we have discussed in a previous post on ascending triangles, the breakout should come about 2/3 way down from the beginning of the wide end of the triangle going towards the apex where the two trendlines would eventually meet. Closer the action moves towards the apex, higher the probability that the price would just drift along.
For the duration of an ascending or descending triangle, the general consensus is that it would take from one to three months to form and achieve the breakout.
This triangle begins to form around mid Jan, and now is nearing the time rule zone for the breakout. The two arrows on the chart point at the 1/2 way mark and the 2/3 mark, roughly.
For caution on these triangles, they are quite susceptible to false or failed breakouts. Volume gets quite thin as the triangle/trendlines move towards the apex, a slightly sharp activity can bring about increased volatility driving the price outside the trendlines. Entry without proper volume/price confirmation can lead to a shakeout. It's best to wait for atleast the day's close to see if the price would close outside the breakout zone. Even so, a shakeout can happen a few days later too if there is increased whipsaw action.

For calculating price targets the simple rule of the thumb is as follows: Calculate the height of the triangle. This would be on the extreme right at the start of the triangle where the two trendlines are the widest apart. This is the line that joins the top trendline which is the even horizontal line, and the first bottom where the up-slanting second line starts. The first bottom is the deepest of course, so the maximum height is this.
In the chart, this height is 37. We arrive at this as follows: The deepest low is 144, and the top trendline defines the 181 level. So 181 minus 144 gives us 37.
Now, when the upside breakout occures, this would naturally happen above the 181 mark.
So, following the technical prescribed rule of the thumb, we add 37 to 181 and arrive at the figure of 218. This theoratically would be the target.
Instead if the breakout happens to the down, we minus 37 from 181 to arrive at the first target level of 144, which was the first deepest bottom to begin with, and the assumption would be that it would form the first support.

All of the above is theoratical of course and what happens on the market floor may vary, but it certainly provides a general guide.
Do take a check if you need to clarify anything.
Bye for now.

Attached Images

ParamountCom.jpg (38.1 KB, 18 views)

Amit,

Oriental Bank of Commerce(OBC) has been rather lackluster and is in the range 237 - 250 for some time. Do you see this scrip moving up at all? I hold 100 @ 263.5

Thanks,
Kool

can somebody kindly indicate a good portfolio of stocks to start with for a amount of Rs100000 which can be used or monitored and nurtured for all the members to emulate and benefit

I find inspite of market gaining by 195 points on friday many scripts have not moved up much .that means only select counters attract the market fancy and many good scripts are not touched at all.if the senior members indicate the sectors which are presently HAVING GOOD PROSPECTS IN 2006 will be a great help to new investors. Infrastructure, construction, capital goods, power seems to be great potential in 2006 and 2007 Please indicate others views

Hi Amit,

Good to have you back. I hope you have recovered completely. The threads look lifeless without you and Saint. Thanks for explaining the chart of PARACOM in such detail.

You recall that we had a couple of posts on KEI. Well, its doing fine CMP is 368 . I picked up some at 309 and my average is 302, so thats a good profit. Last friday it went to a high of 409 but came down sharply to close at 368.

Should i book profits or hold on ? please suggest.

Thanks,
Partha