Trading Picks and Strategy

[sujarouf]

Canara Bank Broken Out Of Triangle

CANARA BANK has finally broken out of Triangle . I think we can now use the trading strategy as mentioned below for the few days . Anyways one may now take a LONG/CALL position in the stock with the following parameters.

Entry Level ->> 280-285

TARGET PRICES ->> 310-315

stoplosses ->> 265-270

Holding Period ->>10- 15 trading sessions.

View of the chart:
http://www.traderji.com/attachment.php?attachmentid=3857&stc=1&d=1167851565

 

[sujarouf]

Call And Put Options For Ril

Another trading strategy based on combinations of CALL AND PUT OPTIONS . As we see below RIL has consolidated into a nice triangle formation and is now expected to breakout in either direction.

View of the chart
http://www.traderji.com/attachment.php?attachmentid=3858&stc=1&d=1167852870

As one can see the attached charts there exists a possible SWING of around 100 RS in either direction of breakout. So one may use the strategy of buying CALL and PUT options to make good of movements in either direction.

STRATEGY IN DETAIL

BUY CALL OPTION at STRIKE PRICE ->> 1290 ==>> 34 Rs (Last traded price)* 300 = 10,200 Rs.

BUY PUT OPTION at STRIKE PRICES ->> 1260 =>> 16 Rs(Last trader prices ) * 300 = 4800 Rs.

TOTAL COST ->> 15000 Rs.

SCENERIO 1-RIL BREAKSOUT ON UPSIDE

RIL BREAKOUTS ON UPSIDE ->> TRIGGER LEVELS = 1300(STOCK REACHING THIS LEVEL SIGNALS UPSIDE BREAKOUT)

POSSIBLE TARGET =>> 1390-1395

CALL OPTION (STRIKE PRICE 1290) WILL BE VALUED AT 100 Rs. Total GAIN = 100*300 = 30,000 - 15,000(COSTS) = 15 K.

SCENERIO 2-RIL BREAKSOUT ON DOWNSIDE.

RIL DOWNSIDE BREAKOUT ->> 1270 (SIGNALLING DOWNSIDE BREAKOUT)

POSSIBLE DOWNSIDE TARGET =>> 1160-1170

PUT OPTION (STRIKE PRICE 1260) WILL BE VALUED AT 100 Rs. Total GAIN = 100*300 = 30,000 - 15,000(COSTS) = 15 K.

SCENERIO 3-RIL DOES IT MOVE (MOST UNLIKELY , 5 % PROABILITY)

Then we will loose the time value of money of the options thus we may loose a possible 20 Rs in the option costs.Total loss would be 6000.

So we may use this strategy to safely play the RIL STOCK !

Regards

Suja

 

[sujarouf]

Tcs Breakout

TCS also seems to be moving up after a breakout from the channel formation.

View of the TCS Channel Chart
http://www.traderji.com/attachment.php?attachmentid=3859&stc=1&d=1167853402

LONG POSITIONS IN TCS may be opened with the following parameters .
Entry Prices ->> 1250-1275
Target Prices ->> 1350-1360
Stoplosses ->> 1235-1240
Holding Period ->> 6-12 trading sessions.

Regards

Suja

 

[AbhiRao]

KEI Industries & Graphite India

Does anyone track these two stocks? Both of them recently split from FV10Rs to FV 2Rs.Even after the dilution these two looks extremely good with P/E ratio of less than 2.

Could anyone let me know your views and results expectations?

Best Regards,
Abhi

 

[sujarouf]

Re: KEI Industries & Graphite India

Does anyone track these two stocks? Both of them recently split from FV10Rs to FV 2Rs.Even after the dilution these two looks extremely good with P/E ratio of less than 2.

Could anyone let me know your views and results expectations?

Best Regards,
Abhi

KEI is forming a triangle and there may be a breakout on the either side. Will study the graph and post later.

Suja

 

[sujarouf]

Rel Triangle

Hi

I beleive that the market is critically poised now a days as I see several triangle formations in the NIFTY stock charts. This signifies that most stocks have finished their state of consolidation and are now ready to make moves.

ONE such stock is REL .

View of the REL TRIANGLE Chart
http://www.traderji.com/attachment.php?attachmentid=3866&stc=1&d=1167938475

DOWNSIDE TRIGGER ->> 515 LEVELS ON CLOSING BASIS.
UPSIDE BREAKOUT TRIGGER ->> 545 LEVELS ON CLOSING BASIS.
WAIT FOR BREAKOUT and trade in the direction of breakout

Suja

 

[sujarouf]

Rel Triangle Breakout

As seen in the chart there is downside breakout in REL (REL TRAINGLE) .

CHART OF THE DOWNSIDE BREAKOUT OF REL TRIANGLE
http://www.traderji.com/attachment.php?attachmentid=3912&stc=1&d=1168453835

With this breakout we can take positions as follows.

SHORT SELL REL
ENTRYPRICES =>> 515-525
Target Prices =>> 475-480
Stoplosses ->> 532

Regards

Suja

 

[sujarouf]

Tcs At Support

An update to my recommendation on TCS breakout.

VIEW OF THE CHART TCS AT SUPPORT
http://www.traderji.com/attachment.php?attachmentid=3913&stc=1&d=1168454246

After todays fall it closed to its stoplosses as mentioned in my previous postings.

So one needs to see if the market falls further or not .(NIFTY has broken below its support levels at 3930-3940 and has closed at 3850 today). So I think TCS will voilate its stoplosses mentioned in my post and may go further down.

Regards

Suja

 

[sujarouf]

I have got some news about Shilp Gravue BSE Code 513709 which is up for takeover @ 120.00. The CMP is 58.35 and the company has Equity of Rs 6 crores, PAT Rs 6 crores Dividend payout was 18%. If this news is correct then it is recommended to buy this scrip at this level for a target of Rs 120.00 which will happen in very short term.

We should take the advice of Mr. Ahmed regarding the fundamentals of this company before investing. I have no position in this scrip and will wait for Mr. Ahmed to give his view before I invest.

Thanks and regards

Suja

 

[sujarouf]

I have got some news about Shilp Gravue BSE Code 513709 which is up for takeover @ 120.00. The CMP is 58.35 and the company has Equity of Rs 6 crores, PAT Rs 6 crores Dividend payout was 18%. If this news is correct then it is recommended to buy this scrip at this level for a target of Rs 120.00 which will happen in very short term.

We should take the advice of Mr. Ahmed regarding the fundamentals of this company before investing. I have no position in this scrip and will wait for Mr. Ahmed to give his view before I invest.

Thanks and regards

Suja

Originally Posted by mahmeds2000
Hi suja,
Script was good to buy at 45-50 range. now its cmp is 63. I have checked the fundamental. fundamental is OK. but my suggestion is always Do not enter into the script which is already spurt a lot?. I will not enter into the script now instead wait for the current quater result and pullback into my buying range.

Ahmed

Please wait for some pull back before buying as the scrip has come down after touching 71 to 63 and may go down further.

Regards

Suja