Positional Trades by Raj

[healthraj]

I was hoping the IT Stocks would take the market to new HIGHs. So I doubt whether the market will cross 6200. We have to see

But INFY RESISTANCE Changed from 3500 to 3400 and trading near the MAX PAIN of 3200.

TCS Already trading below the MAX PAIN 2150. I am not sure if it tested the RESISTANCE At 2300.

For Today AXISBANK should provide a Trading opportunity. Yesterday closed at 1094. MAX PAIN and RESISTANCE at 1100. Support at 1050. The only problem is that the Range has narrowed and so could be in small Range for some days.

AXISBANK Rocked today and closed 5% above the RESISTANCE.
TCS also closed 3% below the MAX PAIN and the MAX Pain changed from 2150 to 2140. So TCS is loosing on the UP side. May be I think it will play against Rupee.

So in the morning if you can pick a Stock where the MAX Pain = RESISTANCE or MAX PAIN = SUPPORT then you should get a better profit than any other stock. It is one way of picking your stock.

We had similar examples in this week like YESBANK, INDUSINDBK etc...

 

[healthraj]

Positional Trades.

TCS is Trading below the Pivot (MAX PAIN) of 2140. But TCS did not Test the RESISTANCE of 2300 in this Series. So if you Get TCS above 2140 then it is BUY for a Target of 2300. So keep a Watch on TCS for the Breakout of the Pivot. Otherwise TCS can go and the TEST the support of 2000.

Same is the CASE for HCLTECH: Now Trading (1094) below MAX Pain at @ 1100. So if you Get it above 1100 then you can get 1200 as the Target.

JPASSOCAT is trading exactly at the RESISTANCE of 45. MAX Pain and Support at 40. So Watch JPASSOCAT for Taking a Short NOT today but whenever the market goes down.


ICICIBANK is also Trading near the RESISTANCE of 1000 (994) - So it might participate in the downtrend and not in UP trend.

From an UP Trend Perspective, If BANKNIFTY has to go Further UP, then the following stocks need to participate
BANKBARODA
YESBANK
SBIN
HDFCBANK
INDUSINDBK

JPASSOCIAT - Today closing the RESISTANCE , SUPPORT AND PIVOT is formed. So those who want to Trade for Expiry Can Take short below 45 or current levels for minimum Target of 43.

This morning the MAX PAIN and RESISTANCE was at 45. Now the MAX Pain has moved to 43 and RESISTANCE Remain at 45. But the stock closed above Resistance at 47. So better to wait for some Cooling period of few days and if there is a clear down trend can Trade for a target of 43

 

[sabhlok_r]

Ambuja fut shorted @ 201...target 195

target achieved in ambuja... made a low of 193.60 today.

 

[paragkodilkar]

Hi Raj Sir,

I Posted Error in Yout Advance Trading Strategis Thread Could you please help?

 

[sabhlok_r]

DLF, max pain is 150, resistance @150 and support @140...cmp 165.
Raj, what should be the trade in such cases? Is this a good candidate for short ?

 

[healthraj]

DLF, max pain is 150, resistance @150 and support @140...cmp 165.
Raj, what should be the trade in such cases? Is this a good candidate for short ?

That shows that there was Breakout at 150. But since the MAX Pain remains at 150, DLF could expire at 150. But it is better to wait and let OAT show a new RESISTANCE say at 170 and then Take Short positions near the NEW Resistance for Target of 150. Now it is Too early to decide anything because the MAX Pain could change

 

[anup]

So in the morning if you can pick a Stock where the MAX Pain = RESISTANCE or MAX PAIN = SUPPORT then you should get a better profit than any other stock. It is one way of picking your stock.

Raj it would be better if we track/paper trade this method

 

[healthraj]

I took a Pause because I am anyway not trading in Stocks and I am not sure if anybody is Trading with the Stocks and the Levels that I post.

So I thought I would pause and wait for some feedback or Reaction

 

[sabhlok_r]

I took a Pause because I am anyway not trading in Stocks and I am not sure if anybody is Trading with the Stocks and the Levels that I post.

So I thought I would pause and wait for some feedback or Reaction

Raj.....sorry for not updating but I am trading in stocks. Had shorted dlf fut today @165 and it gave decent profits.
Even ranbaxy short worked well after hitting res @ 409(fut)..today it made low of 382. So did ambuja cement (today's low 192.05 fut)

 

[healthraj]

Raj.....sorry for not updating but I am trading in stocks. Had shorted dlf fut today @165 and it gave decent profits.
Even ranbaxy short worked well after hitting res @ 409(fut)..today it made low of 382. So did ambuja cement (today's low 192.05 fut)

Sabhlok, No issues. Good that it is working and you are making profit. So My positional Strategy very simple.

1. If you want to Buy, Buy near the SUPPORT (MAX OI @ PE)
2. If you want to Sell, Sell near the RESISTANCE (MAX OI @ CE)
3. Those who want to Trade BREAKOUT or BREAKDOWNS need to look for MAX PAIN = SUPPORT or MAX PAIN = RESISTANCE.

But the above is mostly for Positional Trades. But the same logic works for Intraday and so the Positional Traders can carry the positions until at least MAX PAIN. So instead of Buying and Selling in between SUPPORT and RESISTANCE and do not know which direction it will go, it is better to follow the above three rules.

One more filter I have applied on the Stocks that I has suggested in this thread is that I chose the stocks which has a Range (RESISTANCE - SUPPORT) of more than 10%.