List for 1st Dec 2020

New month starts and we have new margin rules as well. Lets see how it impacts the markets.

These are the stocks on my watch today:

Results for 25th Nov 2020

Here are the results for 25th.

Trades in 2 counter. HDFC Life and BNF. 2 worked and 2 did not.

HDFC Life: Took the trade at the break of the ATH at 678 in futures level but I traded cash as I was trading a direct break out and wanted to carry less qty. It gave a nice move and booked 1% in half and trailed the rest with SL to cost. The second trade was when the market bounced back from the crucial level of 13k and I was expecting it to move higher. The rationale was that this counter (HDFCLife) was strong and would have revisited the DH, and also that it was the first time it made a HH and HL after the down move from the high of the day . Did not work and hit the  SL.

BNF:  Took 4 trades here but could not post the last 2 trades in the Telegram channel on time as the move was very fast and I was in and out before I could have posted the trade. It did give heartburns to few subscribers but please bear in mind that it is not possible sometimes for me to post a trade where there is a scalping opportunity. It is just too fast. Sorry for that! In hindsight they were the trades that gave a profit. I have marked the rationale on the charts and I hope that it shall help the readers to understand and try and take these kind of trades on their own in future. These kind of setups occur frequently in BNF/NF. You may ask me any questions incase any clarification is required. Will answer to each and every query to help.

The first entry was based on the continuation of the upmove after the gap up. I was expecting a nice upmove in BFN based on the previous days closing. The second entry was the reversal and attempt to climb above the PDH. Both were traded through options. Both hit SL. The 3rd entry was when it failed to trade above PDH after repeated attempts and reversed, I took the short trade through buying puts. This moved well and I took another trade looking at the volume profile and speed. Refer chart.

  

List for 25th Nov 2020

Here is the list for the day.

Results for 24th Nov 2020

2 trades. Both moved well.

Kotak Bank: This was a buy above the BRN of 1900. Wanted to be sure of the BO so waited for a while before taking the entry. Exited early and it moved very sharply after the exit.

NF 12900 CE: This  was a buy above the BRN of 13000. Had attempted to break this level many times but today was finally the day it broke and successfully traded above it. Took the trade through the ITM option rather than futures. 

 

List for 24th Nov 2020

Only watching one stock today. 

Results for 23rd Nov 2020

Took 3 trades. HDFC Bank, BNF PE and NF PE.

One SL hit in HDFCBank and the other 2 gave some.

HDFC Bank: This was a break above the previous ATH. It gave the needed BO as well as the pullback, though the pullback was only one candle. Pullbacks are generally a little longer but in stocks the pullbacks may not be that long before the underlying trend resumes. It promptly reversed and took the SL. There was no time even to trail the SL. 

BNF PE: This was the classic setup at the break of the PDH. After the break below the PDH it tried to climb back above it and failed to sustain above the PDH and I went short by buying PE as soon as the trend resuming towards the downside. This gave a nice move and I could have trailed but the loss in the first trade was topmost in my mind and I covered as soon as I was in the green.

NF PE: This was the same case as in BNF. Break below the PDH and failure to trade above it. This also gave a nice move in favor.

List for 23rd Nov 2020

Here are the stocks on my watchlist today!

Trade charts till 19th Nov 2020

Good morning all!

After a long break I have resumed my blog updation. Was busy with travelling and the holidays for the past more than a week!

I shall be resuming my daily posting of stocks selection in the morning before trading begins and the follow up of the trades post market. I had stopped doing this due to the increased volatility witnessed in the markets due to the US elections.

I am posting the charts for the trades taken in the last week and the charts are self explanatory.

I have put detailed analysis in the charts for the 20th November trades as I got hit with SL's in 2 trades and it is far more important to learn when to get out of the trade rather than when to enter....holding on to a losing trade is extremely dangerous. Do post your queries incase you want any further clarifications and I will try my best to answer them.

We will start with the 20th November trades first as these would be fresh in our minds.

20th November

TCS: This gave a delayed entry. I had cancelled this and took the entry later on as in the daily charts it was trading at the range low. The selling pressure at the day open(first 2 candles) was absorbed and the failure of the sellers to drive prices lower gave the first clue that the stock could move higher. Could manage to book some profits and the remaining didnt give as much as expected.

Titan: The previous day high was an important level as it had faced selling pressure there(check daily chart). The break of the PDH was the trigger for the buy. The only mistake here was that I didnt wait for the pullback and entered on the direct BO. I rarely do this as it is always a risky to trade direct BO's. Was immediately punished and the SL was taken out promptly. 

Reliance: Saw selling from the open with good volumes. The same was absorbed and a hammer was formed on the charts.....this  level was again tested and held. Trade was a range BO that formed just above the lows of the day. This didnt move as expected and we saw renewed selling which hit our SL and also the broke the day lows decisively.

Some charts from trades taken at earlier dates:

Reliance:

Asian Paints:

HDFC:

HDFC Bank:

SRTrans Fin:

Tata Consum:

Trades for 5th & 6th Nov

 Trades for 5th and 6th Nov

5th November:

Took 3 trades. SRTransFin/Tata Consum and Asian Paints. Please find the charts as under. 2 hit our TSL and AP gave a good move though it triggered in the  last hour of the market.

Tata Consum:

SRTransFin:

Asian Paints:

6th Nov

Traded HDFC/TCS and HDFC Bank. TCS hit SL and the HDFC twins gave us some. It was a trending day but since I was travelling I couldnt manage to re enter the HDFC Bank for riding the upmove above 1285. It was a picture perfect entry.

TCS:

HDFC:

HDFC Bank:

Trades for 4th Nov

Traded only Reliance.

Took 2 trades. The first gave some points. The second trade was a scratch trade with no profit no loss.

The chart is self explanatory.

Trades for 2nd & 3rd Nov

Wishing you all a profitable month ahead!

We are very close to the US election results and have been experiencing high volatility. The increase in volatility poses challenges as well as learnings. If one wants to be a fulltime trader, one needs to accept this volatility spike and still have faith in his system and go ahead with trading. However, as a caution the trades need to be ones with tight SLs and quick exits. The faster one trails the SL in this situation the better it is as it decreases the risk associated with staying in the market.

On 2nd I had traded only Titan and on 3rd had taken trades in IndusInd Bank, Axis Bank and Reliance. Had also traded BNF through options to reduce risk. Please go through the charts to understand the trades.

Titan: It gave a perfect entry and had a close SL, however, the sellers could not drive the prices down and all the volume got absorbed at lower levels. Along with this there was a reversal in BNF and NF which prompted me to exit the trade at cost. There was minor slippage in the trade but it was still a safe exit.

Indus Ind bank: This was a long call that quickly reversed and hit the SL. 

Axis Bank: This also repeated the IndusInd move and promptly hit the SL in a single downward spike.

Reliance: After a steep fall a day before I was expecting some short covering and was watching how it traded at BRN level of 1900. After the opening spike it traded below 1900 but was making higher bottoms. This prompted me to take a counter trend trade on the long side when it broke the DH at 1901. The SL was at 6 points which I scaled up as soon as it crossed 1910. Part booked at 1912 and trailed SL to 1910. It hit the TSL and took me out of the trade. Since it was a counter trend trade and the daily chart is still weak, there was no doubt it would see selling pressure again from buyers stuck at higher levels and renewed shorting. Thus the trailing of SL has to be aggressive.