march f & o picks:-Traderji please comment

#1
Dear Traderji ,
According to tech analysis,my march picks in f&o segment will be
1) arvind mill----buy call
2) hero honda----buy put
3) grasim----buy put
4) mah & mah ---buy put
All four is ---At The Money
Please post your valuable comments.
Readers comments will be apreciated.
 

sh50

Active Member
#2
Since you have said readers comments shall be appreciated, I think we will appreciate if you give us briefly reasoning of the above as to how you arrived at the conclusions since you mention that they are based on technicals. It would be a good learning exercise for everybody. Thanks.
 
#4
Dear sh50,
for hero honda.m&m,grasim--there formed negative divergence on weekly chart for macd.For all three on macd(weekly) is on the verge to give sell signal.On daily macd,all three have sell signals.Also 5 days moving average(simple) have crossed 13 days movig average.So at higher levels i would like to buy put.
for arvind mill ---on daily macd buy has occured.5 days moving average has crossed 13 days moving average.One bad thing is only that weely macd is on the verge to give sell signal if this week or next week price(weekly close) falls slightly.here i am cautious.

Mr.sh50,
I have read all your posts in this forum.All they are valuable and respectable.
If above analysis contains some drawbacks,then please show me that drawbacks..So in future i will try to avoid that.
Waiting for your valuable reply.
 

Traderji

Super Moderator
#5
sachin divase said:
Dear sh50,
for hero honda.m&m,grasim--there formed negative divergence on weekly chart for macd.For all three on macd(weekly) is on the verge to give sell signal.On daily macd,all three have sell signals.Also 5 days moving average(simple) have crossed 13 days movig average.So at higher levels i would like to buy put.
for arvind mill ---on daily macd buy has occured.5 days moving average has crossed 13 days moving average.One bad thing is only that weely macd is on the verge to give sell signal if this week or next week price(weekly close) falls slightly.here i am cautious.

Mr.sh50,
I have read all your posts in this forum.All they are valuable and respectable.
If above analysis contains some drawbacks,then please show me that drawbacks..So in future i will try to avoid that.
Waiting for your valuable reply.
Good post Sachin,

I appreciate your taking the initiative and would like to see you post more often.
 

sh50

Active Member
#6
Thanks for the compliments. Its always nice to have somebody who can substantiate with reasoning. I could be wrong but my MACD weekly charts shows buy signals on Arvind mills and Hero Honda. Another suggestion is that when you talk about moving averages you should mention whether they cut from below or above as it can be misleading though your mention of buying puts makes it obvious. I know that buying at the nearest strike price is a thumb rule or something like that but if you are confident,maybe you can guide us thoroughlly on one or two stock on which strke price to buy with reasoning and profitability. Short term being dicey, one cannot afford to goof up.

The Investmart branch manager told me that since options market is not perfect in India, option hedging strategies do not have much significance as majority of players in India are speculators. Maybe you and traderji can throw some light on that. Best of luck in the forum and keep it up.
 

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