How to select stocks for investing

Flow chart to help select stocks for investing.

Flow chart for selecting stocks for investment

Credit: Sunil Saranjame.

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Trading view on NTPC for week starting 30/05/2016

Bullish Possibility: 

NTPC Daily Chart

Summary: 

1) Nice cup and handle pattern on NTPC daily chart. Breakout above 148.5. Hence go long above 148.5 with SAR at 147. Filter considered = Rs 1.5/-
2) Also trading above 50 and 200 daily MA.

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How to trade Tatamotors for week starting 30/05/2016

Bullish Possibility: 

In our earlier post on Tatamotors we mentioned:

Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.

Now let's see where we are:

Tatamotors Daily Chart

 As can be seen from the above daily chart of Tatamotors we moved out of red falling trend channel but still within the green falling trend channel and for the last 1 month or so this stock has been moving in a small range of 404-376. This consolidation range is marked in grey in the chart. Hence until we are above this consolidation range no major bullish move possible. So aggressive traders can go long above 404 with a filter of 2 points as SAR.

Bearish Possibility: 

Bearish corrections possible till we are floating below 404. Hence hold any short positions with 404 as SAR with 2 points filter value.

 

Summary: 

1) Tatamotors SAR is at 404 hence go long in tatamotors above 404 with 2 points filter. 

 

Final Words: 

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Maruti for week starting 30/05/2016

Bullish Possibility: 

In our earlier post on Maruti, we mentioned:

For the last couple of weeks Maruti has put on couple of doji signals on weekly chart. Doji signals indicated indecisiveness between bulls and bears and also some times indicate formation of tops. But the good thing is that Maruti still floating above 3800. So till this is trading above 3800 bulls are safe and look for first target at 4177 and next 4340 approx.

Now let's analyze where we are in this counter. Last week Maruti opened at 3964, made low at 3893, high at 4162 and closed at 4146.6. So we are almost near our first target of 4177.

Maruti Daily Chart

As can be seen from the above daily chart of Maruti we are almost near to the top of the rising trend channel line and 61.8% Fibonacci retracement of the last fall. Hence resistance is expected at this area and some minor correction can be started but we should be resuming the trend as long we are within the rising trend channel. The next target is at 4340 approx which is the target of the Inverse Head and Shoulder as marked on the chart.

Bearish Possibility: 

As a trader we should always be ready with our stops and reversal levels. Hence traders should hold on to their long positions with stops moving to entry point i.e 3800 level and should use this as SAR for short entry. 

Summary:   

1) Maruti has resumed it's primary long term trend which is long. 

2) Traders should hold on long with SAR at entry point i.e 3800 as this is a medium term trade hence no aggressiveness.

Final Words: 

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Nifty for week starting 30/05/2016

Bullish Possibility: 

In our last post on Nifty weekly update we mentioned: 

if Nifty trades above the falling channel (blue) it will be bullish and can target the upper edge of the consolidation zone which is at 7972 approximately. A successful breakout above 7808 will result in targets like 8323, 8650 and 9191 respectively.

So let's analyze where we are now: 

Nifty Daily Chart

In the above daily chart of Nifty we are now trading comfortably well above the consolidation range (the grey area in the chart) hence the targets are now 8323 and 8650. Support lies at 7808 (the upper band of the consolidation area) and 7972 (which was resistance in the past). Hence play long with SAR at 7972. 

Bearish Possibility: 

Bearish possibility is muted currently as long as we are trading above 7808-7972 zone. 

 

Summary: 

1) Hold longs with 7972 as SAR with filter 20 points.

 

Final Words: 

 If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Banknifty for week starting 30/05/2016

We posted in our last weekly update on Banknifty on 16/05/2016 that 

for bullishness Banknifty needs to trade above this blue resistance line which for next week lies at 16652 as can be seen from the above chart.

 And also

1) Play long with 16652 as SAR with 50 points filter.
2) Banknifty in consolidation move for the last 1 month, decisive move ahead.

Now see what happened in the below daily chart of banknifty:

Banknifty Daily Chart

This is a clear breakout of Banknifty trading well above the falling broadening wedge pattern (blue lines). Now let's analyze Banknifty for the coming week.

 Bullish Possibility:

As can be seen from the above chart till Banknifty is  trading above the upper blue line bulls are safe. The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197.
Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

Bearish Possibility: 

Bearish possibilities are currently muted now as long as we trade above the upper blue line of the falling broadening wedge pattern (blue lines). But in case if we then the immediate target would be 16343 and 16196.

Summary:

1) Banknifty is bullish above the upper blue line of the falling broadening wedge pattern.
2) The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197.
3) Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

 Final Words:  

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Cairn for week starting 30/05/2016

Bullish possibilities: 

So far have been trading in Banknifty, Nifty, Tatamotors and Maruti but looks like a new bullish cycle is about to popup in Cairn. Below is the daily chart of Cairn.

Cairn Daily Chart

As can be seen from the above chart that all 5 bearish waves looks like completed in Cairn and this stock is going to start a new bullish cycle now. Though I expect wave 1 of this bullish cycle already done at 158.4 and we are now in the wave 2 correction and almost about to break the down trendline. Hence it is a sure buy above 150. As can be seen from the above chart first target is the Fibonacci 38.6% i.e 213, 2nd target Fibonacci 50% i.e 246 and 3rd target is Fibonacci 61.8% i.e 279.

Bearish Possibilities: 

Bearish below 150 hence if you enter a long at 150 manage the trade with Rs 1.5 filter i.e short below 150-1.5=148.5 and go long above 150.Bearish 1st target 133.7 and 2nd target 113.45 and 3rd target is 106.5

Summary:

1) Cairn is bullish above 150 aggressive traders can enter there and manage the trade with Rs 1.5 filter. 

Final Words:

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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Nifty update on 19/05/2016

 Update on 19/05/16 3:20 PM

Summary:
1) Nifty breakdown level=7778
2) Current range=7922-7778

Update on 20/05/16 10:20 AM
 

Summary:
1) Nifty triangle breakdown happened. 

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Banknifty update on 19/05/16

 Update on 19/05/2016 3:00 PM

Banknifty Hourly

Summary:
1) Banknifty triangle breakdown below 16550.
2) Current range 16800-16550.

Update on 20/05/2016 10:20 AM

Summary:
1) Banknifty triangle breakdown happened below 16550.

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How to trade Maruti for week starting 16/05/2016

 15/05/2016 03:23 PM IST

In Debtrades, last week we mentioned that,

Quote:
For the last couple of weeks Maruti has put on couple of doji signals on weekly chart. Doji signals indicated indecisiveness between bulls and bears and also some times indicate formation of tops. But the good thing is that Maruti still floating above 3800. So till this is trading above 3800 bulls are safe and look for first target at 4177 and next 4340 approx. 
Unquote:

Last week Maruti opened at 3830, made a low at 3790, high at 3909.8 and finally closed at 3846. So we are still lagging in momentum in this stock.
Now let's analyze how this stock can trade this week. We will first consider the bullish possibility.

Bullish Possibility: 

Maruti Weekly Chart

 As can be seen from the above weekly chart, Maruti has put another doji last week indicating indecision between bulls and bears but the good thing is that, Maruti still trading above 7800 and till it is trading above 7800  there is a good chance that this counter can reach up to 4340.

Bearish Possibility: 

Below 7800 Maruti can target the lower edge of the consolidation rectangle marked in red in the chart which is at 3600 odd levels. 

Summary:
1) Maruti is trading above the consolidation range, 3800-3600.
2) Till Maruti is trading above 3800 can potentially target up to 4340.
3) Maintain a long position with 3800 as the SAR value with 20 points filter.

Final words: 
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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