Educomp

Tempted to increase exposure but may be will hold on till Monday

Educomp

Shorted educomp at 269.15. Target 250

HDFC, HDFCBANK, LUPIN

HDFC, HDFCBANK

Looks like technically a short postion call is just days away. The stocks have topped out

LUPIN

Technicals suggest a long term short call. Fundamentals are not suggesting that interesting to see who is right

Ranbaxy

Ranbaxy satisfies technical parameters and shorted at 520.5

Reviving the Blog

I am writing the blog after a long time. I have restarted trading in the futures market and plan to put my trades after execution on the blog. This way I will have history of my trades and can look back about my thinking.

These are technical trades and following parameters are used for initiating trade. First three parameters have to be complied before the trade is initiated.

The technical indicators are

1. 200 DMA (flat or falling for short, rising for long)
2. 14 Day RSI (around 70 for short around 30 for long)
3. 5 day fast stochastic (around 80 for short, around 20 for long)
4. Divergence in Accumulation/Distribution with price action

Lets see how it works out. Please note this a beginner's system and chances of success are slim.

Given the mood of the market I will mostly post short calls. Hence there are guranteed few big negative days at least.

And

LAST BUT MOST IMPORTANT DO NOT TRADE ON THESE CALLS

These are for my records and not recommendations

Thanks a lot

Bank Stocks ready for a trading bounce?

Bank stocks have been badly mauled in the last one to two months in the Indian bourses. An interesting correlation can be seen between the BankNIFTY index of NSE and the Assets Under Management (AUM) of Benchmark BANKNIFTY Bee in the chart below. In fact the AUM change appears to be a leading indicator for the BANKEX’s performance.



The AUM of Benchmark Nifty Bee is racing towards zero. It is likely that there will be nothing to sell soon. This will reduce selling pressure on the bank stocks in near future .
Looks like a bounce is on cards for bank stocks in the remaining part of March. Can it be traded?

Nifty: Will it break 2500?

All of us are watching the 2500 level on the nifty with great interest. There is growing consensus amongst the commentator that it will be broken sooner rather than later and many technical experts are predicting a dive towards 2000 and possibly 1800. Normally when we find such a consensus the market usually proves us wrong and heads in the other direction. Unfortunately this is what the entire trading community is thinking and all are positioned for a strong bounce off the 2500 level. There are hardly any shorts in the market and strong PUT writing at 2500 level confirms this. Thus, its look like this time market will do exactly as what pundits are predicting as hardly anybody is positioned to benefit from the downward dive. The 2500 level has been successfully defended in the recent past primarily due to insurance inflows which are set to dry out as March unwinds. So fasten your seat belts and get ready for a dive.