Lets analyze Indiabulls!!!is it gr8 share to buy????

[rajputz]

i was recently working on some technical analysis of shares and found Indiabulls interesting buy....

here i am presenting what i studied and how is the stock performing. i need the suggestions of all regular and advance trader......any contradictions to my views are invited....tell me where i thought was wrong and do tell me the future of the stock by you own technical analysis study...i will be thankful



1. at first i opened the 30 days chart of the indiabulls : -

it was as given

in this chart we can se that RSI as well as stochastic is starting to cross the oversold and the buying power is starting.

2. second thing that i wanted to confirm was that if i buy the share at this price and if my thinking and studying of chart goes wrong then is the share in the position that i can hold it for long term. so i zoomed out and saw the previous history of the indiabulls as given below: -

3. so the condition was that it got down from the highest price of 800 in the 2005-2006. then from 225 to 130.


4. i confirmed some news site if their is any negative news in few days about the indiabulls. and their was none.

according to study of charts i considered the indiabulls to be good buying call.

the other details of various indicators are: -

RSI of 14
Stochastics 8,3,4

I bought the share on 135 and sold at 140 then again bought at 141.....

now on thursday the market fell suddenly and continued on friday.



i want all the senior and expert members to kindly have the view and tell me if i am wrong in my analysis. also should i hold the stock for next 15-20 days in a hope for rise of around 20-30rs.



all replies are thanked....either good either bad

 

[sudoku1]

major resistance @ around 195

 

[rajputz]

and what about the current market leve....any chances of going up in 15-20 days....

is the setting for various indicators right for determining the future price or trend.

like i used RSI 14 and stochastic 8, 3, 4....and other method i discussed

 

[AW10]

IMO, you are reading charts in wrong seq.. U shd look at second chart first..
I visual impression of chart tells even to a non TA person that price came down from top,
it went up.. and currently it is coming down.. Read the right most part of chart and see what it is doing.. Recent price action carries lot more weight then what happened earlier.

So trend here is Down. Strategy in down trend is to sell the rally..

Now zoom in to small TF now and see the clear picture.. You find that it is also coming down here. Price is bouncing but it has yet to cross the previous pivot level around 195/200. Till that doesn't happen, it is too early to call that price is going up. So any rally shd give opportunity to sell..

And when u are looking at such a long term chart.. then whey entry exit at <10 rs of profit. Is you analysis in sync with your trading style ? And if it is long term investment, look at the signals given by long term chart first.
To me nothing here is giving buy signal. I would rather wait for RSI /Stoch to come up and look for short entry signals.. Will wait for price to come to resistence zone and short.. Cause that's when I am with Long Term Trend.

I get a feeling that you want to buy the stock and using TA to justify your buy decision.
IMO, TA will tell you what you want to listen. So it is very important to be very objective and clearly read what chart is telling us.. Otherwise, more TA u know, more reasons u can find to convince yourself that it is buy time for it.

Hope this helps..
Happy Trading

 

[rajputz]

I am looking to hold it for 15-20 days....with atleast minimum profit of 10-20 rs....after that it is all welcome...i am new to charts stock selecting...

generally the perfect buy condition for me is when 5 ema crosses the 13 ema....rsi starts moving above the 30 lines...stochastic has also risen from 30 line...then i consider the buy signal....and the price u are telling is resisstance and wont go any further then it is my appreciated target....


so what according to you is the time period of reaching that levels again....

thanks for your advice...in what series and what indicators you use to buy or sell the stocks...

 

[sandal wood]

i was recently working on some technical analysis of shares and found Indiabulls interesting buy....

here i am presenting what i studied and how is the stock performing. i need the suggestions of all regular and advance trader......any contradictions to my views are invited....tell me where i thought was wrong and do tell me the future of the stock by you own technical analysis study...i will be thankful



1. at first i opened the 30 days chart of the indiabulls : -

it was as given

in this chart we can se that RSI as well as stochastic is starting to cross the oversold and the buying power is starting.

2. second thing that i wanted to confirm was that if i buy the share at this price and if my thinking and studying of chart goes wrong then is the share in the position that i can hold it for long term. so i zoomed out and saw the previous history of the indiabulls as given below: -

3. so the condition was that it got down from the highest price of 800 in the 2005-2006. then from 225 to 130.


4. i confirmed some news site if their is any negative news in few days about the indiabulls. and their was none.

according to study of charts i considered the indiabulls to be good buying call.

the other details of various indicators are: -

RSI of 14
Stochastics 8,3,4

I bought the share on 135 and sold at 140 then again bought at 141.....

now on thursday the market fell suddenly and continued on friday.



i want all the senior and expert members to kindly have the view and tell me if i am wrong in my analysis. also should i hold the stock for next 15-20 days in a hope for rise of around 20-30rs.



all replies are thanked....either good either bad

AW10 has put things in correct manner. I shall try to answer only those highlighted portion of your post

If you buy share and something goes wrong with your analysis and share price comes down, you will get out immediately. That is called applying stoploss. You are not going to convert your buy in to long term holding. If you do that, you are committing one of the fatal mistakes that is being committed by almost every newbie.

As to negative news, have you checked how far this is involved in Madhu Koda scam? I remember to have seen in TV channels that that is the reason why it fell down so fast

 

[Capricorn]

I would look to short rallies. Swing trading perspective that is.

 

[SwingKing]

i was recently working on some technical analysis of shares and found Indiabulls interesting buy....

here i am presenting what i studied and how is the stock performing. i need the suggestions of all regular and advance trader......any contradictions to my views are invited....tell me where i thought was wrong and do tell me the future of the stock by you own technical analysis study...i will be thankful



1. at first i opened the 30 days chart of the indiabulls : -

it was as given

in this chart we can se that RSI as well as stochastic is starting to cross the oversold and the buying power is starting.

2. second thing that i wanted to confirm was that if i buy the share at this price and if my thinking and studying of chart goes wrong then is the share in the position that i can hold it for long term. so i zoomed out and saw the previous history of the indiabulls as given below: -

3. so the condition was that it got down from the highest price of 800 in the 2005-2006. then from 225 to 130.


4. i confirmed some news site if their is any negative news in few days about the indiabulls. and their was none.

according to study of charts i considered the indiabulls to be good buying call.

the other details of various indicators are: -

RSI of 14
Stochastics 8,3,4

I bought the share on 135 and sold at 140 then again bought at 141.....

now on thursday the market fell suddenly and continued on friday.



i want all the senior and expert members to kindly have the view and tell me if i am wrong in my analysis. also should i hold the stock for next 15-20 days in a hope for rise of around 20-30rs.



all replies are thanked....either good either bad

Rajputz, you are terribly wrong in your analysis ... and here's why,

1) INDIABULLS (Overview) - The stock has been in a downtrend ever since the market collapsed in 2008. The recent outburst in markets have not yet put the stock in a intermediate (or short term) uptrend. If you are bottom picking the stock, then I'd like to tell you that nobody ever has found a technique to bottom pick a stock. The fact is that all the analysis, tools, theories are often wrong. What you see on the screen (price) is the ultimate truth.

2) INDIABULLS (Sector and Industry View) - INDIABULLS belongs to the Financial Sector which is showing signs of a trend. But on further inspection it belongs to the Finance (General) industry in the FInancial Sector group which is still maintaining a downtrend. All the stocks belonging to the same industry are in downtrend or are trading weak (Deltacorp, Edelweiss, IndiaInfo, GeojitPnb, Khandelwal Sec, Motilal etc). Industry stocks move up and fall down together. The overall trend of this industry (finance general) remains down and I see no reason why IndiaBulls should outperform.

3) INDIABULLS (Technical View) - Stock has turned down against a long term resistance level of 225 (with bearish formations) further confirming the down trend. It currently rests at 134 and if further weakness continues, it can surely test 90 - 100 in coming months. Furthermore, on Weekly, Monthly and Daily view the stock is showing strength in its current trend (that is, downtrend). It shows no strength whatsoever in trending up. I'd be only interested (remotely) in the stock if it crosses levels of 225 decisively. But as of now, there are many other sectors where you can trade in.

4) Never EVER buy based on RSI or STOCHASTIC values. These two indicators will continue to remain weak whilst your stock will continue plummeting. Remember that RSI and STOCH are "EFFECTS OF STOCK MOVEMENT" and they are not the "CAUSE FOR STOCK TO MOVE".

Good Luck.

 

[rajputz]

Rajputz, you are terribly wrong in your analysis ... and here's why,

1) INDIABULLS (Overview) - The stock has been in a downtrend ever since the market collapsed in 2008. The recent outburst in markets have not yet put the stock in a intermediate (or short term) uptrend. If you are bottom picking the stock, then I'd like to tell you that nobody ever has found a technique to bottom pick a stock. The fact is that all the analysis, tools, theories are often wrong. What you see on the screen (price) is the ultimate truth.

2) INDIABULLS (Sector and Industry View) - INDIABULLS belongs to the Financial Sector which is showing signs of a trend. But on further inspection it belongs to the Finance (General) industry in the FInancial Sector group which is still maintaining a downtrend. All the stocks belonging to the same industry are in downtrend or are trading weak (Deltacorp, Edelweiss, IndiaInfo, GeojitPnb, Khandelwal Sec, Motilal etc). Industry stocks move up and fall down together. The overall trend of this industry (finance general) remains down and I see no reason why IndiaBulls should outperform.

3) INDIABULLS (Technical View) - Stock has turned down against a long term resistance level of 225 (with bearish formations) further confirming the down trend. It currently rests at 134 and if further weakness continues, it can surely test 90 - 100 in coming months. Furthermore, on Weekly, Monthly and Daily view the stock is showing strength in its current trend (that is, downtrend). It shows no strength whatsoever in trending up. I'd be only interested (remotely) in the stock if it crosses levels of 225 decisively. But as of now, there are many other sectors where you can trade in.

4) Never EVER buy based on RSI or STOCHASTIC values. These two indicators will continue to remain weak whilst your stock will continue plummeting. Remember that RSI and STOCH are "EFFECTS OF STOCK MOVEMENT" and they are not the "CAUSE FOR STOCK TO MOVE".

Good Luck.

Thanks alot for you replie raunak....then how do you prefer to pick the stock based on chart studying...

 

[sudoku1]

in the end ,the strategy that can make money is right...rest is just xperiment !