Charts for the Day

[anil_s_trivedi]

Lot of PSU stocks just squeezing out shorters....BHEL...ONGC....SAIL...

 

[insursi]

Lot of PSU stocks just squeezing out shorters....BHEL...ONGC....SAIL...

Hi anil Ji
The first two are my portfolio candidates . BTW, how do you distinguish between short squeeze and long buildup?

On your sector comparison table --- (post no 2783)
first table shows % 6months (120days) and on second table it shows 180 days --so which one is correct?

 

[anil_s_trivedi]

Hi anil Ji
The first two are my portfolio candidates . BTW, how do you distinguish between short squeeze and long buildup?

On your sector comparison table --- (post no 2783)
first table shows % 6months (120days) and on second table it shows 180 days --so which one is correct?

Dear insursi,

Man you must have a that itchy feeling seeing your gainers in top-5....Congrats...

ONGC i get in early, after amrutaji here asked me about it...Thanks to her for this one...Bhel i missed, tracking but still not dared to enter...

The way prices in futures jumped above previous days, short must have fell the heat today in all these counters...its really difficult to play on short side when general market is up...Infact such is rise, many who rely on EOD cover now in greater pain...

Sorry for typo, its a 120 days...

 

[Sunnyraj]

Dear Amrutaji,

Its the basic table giving us a snapshot of performance of different sectors in specified period. How sector performed over past 1-week, 1-3-6-12 months...

Its gives a quick look and we can say which sector is performing well over past 3-months...which are lagging...

Another interesting thing to look is, if sector is leading over 12 months period,then how we can say its cooling down...first it will spread its weakness over 1-week, then we will get weakness in 1-3 months reading...as soon -3-months is getting into red, you need to be cautious in that sector it implies, intermediate trend is loosing out and if there is a serious weakness, then it will spread over 6-12 months period...

similarly, if any sector is consistent red, then first sign of life will appear on 1-week change...if its coming green, then you should look at into that sector, 'may' be opportunities are coming in...

So Anilji, observing these changes, according to you one should select sectors where % 240 days is highest bcos that's where long term trend is ?

or start from observing strength on weekly, 3/6 months and then look at that sector ?

These days i'm really looking out for methods to pick good stocks from good sectors on which one can do positional trading.

 

[anil_s_trivedi]

So Anilji, observing these changes, according to you one should select sectors where % 240 days is highest bcos that's where long term trend is ?

or start from observing strength on weekly, 3/6 months and then look at that sector ?

These days i'm really looking out for methods to pick good stocks from good sectors on which one can do positional trading.

Dear Sunnyraj,

If one selects %chg 240 days highest then yes it tells us its a better performer over the year as compared to other sectors. But its not to be used in isolation. It can also have implications of topping out going out in that sector.

Secondly, if sector is in deep red over 240 days period then first sign of life to strength need to be looked for weekly/monthly gains...it can tell sector might be improving...

There is drawback also...we had limited sectoral indices in india, so you might miss on good scrips belonging to textiles, sugar..etc...How we work on this...First try to prepare a master list (Universe) where you try to include each sector...Then pick good companies in that sector...Form a list of 300-400 stocks(It might vary, i am quoting for example here)...and study them...
By this study you can have command over every sector performance and whats going up or down...

We in india also have lack of sectoral ETF's..this is again major problem...And investors/traders also shy away from trading presently traded ETF's...Its a fantastic instrument and give you sectoral exposure at ease...good for investors too...

Also, another bad habit of traders/investors is we try to catch falling scrips, rather than trading on scrips which are going up...Traders got lured by falling prices, but one needs to understand, scrips is falling then something is not going good in that scrip...If one is trying to catch scrips in downtrend, then capital allocation needs to be lesser than what one keep in uptrend...Risk management and position sizing is what one makes a successful trader over long term...

Make some rules, what is uptrend/downtrend for you...then analyze stocks based on that rule...you will filter lot of stocks, and then go for best of the rest stocks by looking into charts, with affordable stoploss...dont marry scrip...keep your affairs money related only...

 

[Sunnyraj]

Anilji, what if one tracks NIFTY500 stock list ?

I think it has stocks from all sectors and they are of different market cap too.....

 

[anil_s_trivedi]

Anilji, what if one tracks NIFTY500 stock list ?

I think it has stocks from all sectors and they are of different market cap too.....

Dear Sunnyraj,

No problem...that will also do...The thing is you need to see different sectors, how they behaving...And please make a note of your analysis...it can be a daily diary writings of your observations...It will help you in referring back...

 

[ravi2126]

Anil'ji,how can one read this chart,with very good rise n sudden fall n again good buying...
On weekly to dangerous bearish candle...

http://www.bseindia.com/corporates/Insider_Trading_new.aspx?expandable=2

huge share disposal...

pls guide

 

[ravi2126]

Dear amit,

There are 'n' ways to calculate relative strength...

First a simple thing...what is intrinsic strength...its nothing but position of stock/index wrt to itself...whether its improving/deteriorating...
It can be seen with simply %change over 1week/4week...etc...etc...
For ex: if IT sector posting 3% gain this week and other sectors posted somewhat -ve to less then 3% gain, then It can be seen as potential candidate where intrinsic strength is improving...

https://www.edelweiss.in/Market/SectorPerf.aspx?day=W&type=NSE&idx=Nifty 50

ANIL'JI tyre will get 1st as it show highest gain this week....

 

[anil_s_trivedi]

Anil'ji,how can one read this chart,with very good rise n sudden fall n again good buying...
On weekly to dangerous bearish candle...

http://www.bseindia.com/corporates/Insider_Trading_new.aspx?expandable=2

huge share disposal...

pls guide

Dear Raviji,

Its a simple case of sitting tight...which we retail simply ignore...Stock was running so strong that it even refuses to close below 20 SMA...One thing trader needs to read here is, the enormous volume on 31st august...Such huge volume in uptrend which is running non stop for 7 -months should alert oneself...Stock reversed and corrected with support coming around 50 SMA...Now its a time to consolidate here and need to sort out before taking another look into...