Link to India Stock Tips Facebook Link

Monday, November 16, 2009

Grasim looks good

Click Here to Receive Free Daily Tips to your email

Dear Investor,
Grasim is taking support on 150 day line. Lot of buyers buying the stock. Look at the long green volume lines. Keep an eye on it. Technically this is a good chart pattern and also good entry point.


Zee Entertainment leaving the base. The stock is above 150 day line, it is also above 21 day line. Consistently closing above the base. I belive it will reverse on next dip and thats when you could enter it. Very good buying support.


I will be travelling next few weeks so will not be able to post blogs frequently. As soon as I have some time, I will keep you updated.


Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point) LIVE NIFTY CHART (Short Term)

Learn the life cycle of a stock Draw Chart of your Stock

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Saturday, November 14, 2009

Market is FLAT

I looked at 300 stocks to check the trend of stocks in NIFTY. I was surprised to observe that every stock is trading in a flat range. It the range is very well defined. This pattern is exactly what is called as base. When stocks will start moving out of this range, we will find new trend. It could be uptrend or downtrend. Usually it is a uptrend after such a long base.
NIFTY is in a block of 4500 to 5000.


SAIL in perfect FLAT trend. Buy the low and sell the high.
RELIANCE - Very clearly defined vibration block. Buy the low around 1800 and sell out around 2150.
Reliance Infrastructure in the range of 1080 to 1250.

HERO Honda vibrate in 1500 to 1700 range
AXIS bank in 830 to 990 range


In India stock market the move happens very fast at the beginning of trend. Once that uptrend phase is over, they keep the stock vibrating in a particular range for months together. In this period you will be thrown out of the market by taking periodic dips within the base. It will test our patience for months together and one fine day all these stocks will leave there base and move higher or lower. Certainly there is no catalyst to move either up or down so we are just vibrating in a range.
Since MARKET is FLAT, identify the block of your stock and buy when it touches to bottom of the block. You can easily identify the trading block by looking at the simple chart drawn from links at the end of the email.
THE BASE BUILDING IS IN PROGRESS SINCE JULY. NOTHING MUCH HAS HAPPENED SINCE JULY RUN UP. NEXT MOVE IS NOT CLEAR AND HENCE WE ARE TRADING IN A BLOCK.
THIS MARKET IS FLAT.

Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point) LIVE NIFTY CHART (Short Term)

Learn the life cycle of a stock Draw Chart of your Stock

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Thursday, November 12, 2009

Mahindra Ugine - Breaking out of base

Click Here to Receive Free Daily Tips to your email

Dear Investor,

Check Our Current Recommendations

We just got the BUY signal similar to the one we got in July 2009.



Check the blue channel line that is in uptrend. We are moving down and back to the center blue line. The rate of growth is very slow. Total range of movement is around 1000 points. Markets is moving away from center line and returns back to the center line. Overall trend is UP but the rate of growth is FLAT.

Mahindra Ugine - Very nice base built over a period of 6 to 7 month. This stock just breaking out of its base making it compelling buy. Stock is above 150 day moving average line which is great. If overall market does hold then this one is likely to lead forward. Buy when some weakness is displayed by the market to have best possible entry. Just don't buy right away. Give some time, watch it and then move forward.



Overall Dollar strength eroded in last few days so markets are again marching ahead..somehow they are lacking the conviction to keep moving higher. The market is basically trading FLAT near its mean line.

Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point) LIVE NIFTY CHART (Short Term)

Learn the life cycle of a stock Draw Chart of your Stock

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

When to start counting 150 day line?

Click Here to Receive Free Daily Tips to your email

Dear Investor,

Mike asked me a question yesterday
"I take a stock today and want to know its staring point for 150 days movement. From which point or month do I start?"

Please check following chart of MARUTI one of the early leaders in this rally. That starting point to really find the 150 day beginning is around FEB 2009. The problem is we will not be able to find the starting point just like that.

MARUTI

The best way it to start by drawing 2 year chart. 2 Year history from today. You will clearly find a break point from which the stock starts to move higher. If the stocks price is below 150 day line then its in bear market.

When to short a stock?

Look at the ICICI BANK chart. Its break point was in May 2009 to go long in the stock.

Lets see if it would be appropriate to short it today. The stock is above 150 day line so its in long term uptrend. Will it come down in next few days. who know. it might. But Is that a true short point. I guess not because it could bounce back hard. Then when was the true time to short this stock.

Look for Feb 2008 time frame. This is the time when ICICI back closed below its 150 day line. It started true fall from there and did not stop until Mar 2009.

The stock rallied many times withing this time frame but never cross the short point of 1100. Check the following chart with ICICI bank with 50 day line

Look the rally up to 50 day line and going down, it rallies back down and goes down again. This whip-saw action kills lot of traders.

Check DLF chart and send me your answer about when was the correct time to short this. And if you could tell me what to do today?

Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point) LIVE NIFTY CHART (Short Term)

Learn the life cycle of a stock Draw Chart of your Stock

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Monday, November 9, 2009

Orbit corporation chart

Click Here to Receive Free Daily Tips to your email

Dear Investor,

Check Our Current Recommendations

Please study following chart of Orbit Corporation




This is classic pattern for a long term growth stock

Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point)

LIVE NIFTY CHART (Short Term)

Learn the life cycle of a stock

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Vijaya Bank

Click Here to Receive Free Daily Tips to your email

Dear Investor,

Check Our Current Recommendations

Please add following stocks to your watchlist

Buy Vijaya Bank Stop Loss 38 Book Profit 54
Buy Indian Bank Stop Loss 145 Book Profit 185

Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point)

LIVE NIFTY CHART (Short Term)

Learn the life cycle of a stock

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Sunday, November 8, 2009

How to check your investments health

Click Here to Receive Free Daily Tips to your email

Dear Investor,

Check Our Current Recommendations

We learned about importance of 150 day moving average line in previous blog.

Let’s learn to draw the charts and understand health of your investment

1. Use following line to open chart of NIFTY

http://finance.yahoo.com/echarts?s=%5ENSEI#chart3:symbol=^nsei;range=2y;indicator=ema(150)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


2. This link will open following screen for you



3. Start typing the name of the company you want to check the chart in above box.
4. Select the correct company code with .NS at the end of the code
5. Check the current phase of your stock

Can you identify the current phase of Suzlon for following chart?




Stock is below 150 red day line so it is in downtrend. Until it closed above 150 day red line it will remain in downtrend.

It will not shoot up higher from here just like that. It will have to build a base. Base means trading in a range for few weeks or months before moving higher.

Let me know if we should be buying reliance industries after looking at the following chart at indiastocktrend@gmail.com

http://finance.yahoo.com/echarts?s=RELIANCE.NS#chart3:symbol=reliance.ns;range=1y;indicator=ema(150)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point)

LIVE NIFTY CHART (Short Term)


Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Lifecycle of a Stock

Dear Investor,

It is important to understand the life cycle of stock and its effect on your portfolio. It will help you decide to be in a stock or exit a stock.

Stocks have 4 life cycle phases

1. Base Builder Phase
2. Growth Phase - Uptrend
3. Topping Phase
4. Falling Phase - Downtrend

You will know these phases from Chart of a stock. Draw a simple chart along with 150 day moving average line. We will learn how to draw these charts later.

Basic Rule 1: A stock trading above its 150 day moving average line is in uptrend. A stock trading below its 150 day moving average line is in downtrend.

Let’s study the life cycle of JP Associates from 2007 till today and make a decision to buy or sell the stock today Nov 08 2009

Step 1 is to identify what phase are we in? Uptrend or Downtrend?

The JP Associate Chart Image below clearly identifies the Uptrend and Downtrend in this stock. The problem with this system is that it is simple.






Based on this chart correct time to buy the stock was 20 Apr 2007 at around 120 and time to sell the stock was 10 May 2008 at around 250. You would have gained 100%. That is doubled your money.

Next opportunity arrived on 7th April 2009 at around 100. The question is, should we sell the stock today at 220?

Answer is simple. The stock has not closed below the 150 day moving average line consistently. Until that happens we will not sell the stock.

Next question is should we buy this stock today? Answer is YES. Stock has just closed near its 150 day line which is a good opportunity to enter the stock.

You will sell the stock if it closes below 150 day moving average consistently.

BASE Building Phase

Next most important concept to understand is BASE Building phase.





Blue boxes above with text BASE 2007, BASE 2008 and BASE 2009 are called bases for the stock. This is the most volatile phase in the life of a stocks life. This is the phase were most of us keep getting in and getting out in the stock at loss. We loose most of our money in this phase.

Day traders make or loose lot of money in this phase of the market. This is different style of trading where risk is more and rewards are limited. The best entry is after the range bound trading is over and stock closes above 150 day line.

BASE BUILDER is a range bound trading in a stock. This phase could happen for days, weeks or sometimes months. After this phase is over, the true uptrend in the stock starts.


Can you identify when to enter or exit the NIFTY stock market chart? If yes then all my efforts to write this blog have paid off.



From above chart, it is clear that we are in bull market. This is the reason I keep telling you that we are in bull market and after this correction is over we will move higher. If we close below the red line for 4 weeks then the tide will change and we will be forced to exit the market.

The best point to enter the market is when it is near its 150 day line and holds that line. We are very close to that today.

Good Luck and God Bless



Thanks
Anil
Got a Question? mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point)

LIVE NIFTY CHART (Short Term)


Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Tuesday, November 3, 2009

Change of Character in Market place

Click Here to Receive Free Daily Tips to your email

Dear Investor,

There is sudden change in market characteristics. Last post we mentioned about support line holding. As you all already know the support did not hold for many of the stocks. That is a change in character of market place. We have suddenly turned from buyer to net seller. The stocks which nobody wanted to sell and only buy are now being sold at much lower rate but nobody wants them now.

Quick scan at most of the stock show that we have experienced a sort of mini crash in stocks. Most of the stocks have either broken there 150 day support line or have returned very very close to 150 day line. There is too much technical damage in the stocks.

I do not believe that market will suddenly shoot higher from here. We will have to trade in some kind of range before moving higher. Well, This might be the best buy point or may be the best sell point. Its very hard to say that from the chart.

If we carry bullish sentiment then we should be buying at these prices. The only concern to me is that the selling to so much and so much continuous. It means the big players are getting out of stocks. We need to see at least two higher closing within the space of 4 days. Then we could move forward with buying. Right now you should be 70-80% in cash.

The reason what I see is strong dollar. The trend is taking hold and it will force the FII to get out of risky assets like stocks. Since we have broken 50 day support on NIFTY, it better to be out and watch. I have been warning you since Oct 2009 that the time is not good for trading.

Well, here we are now. If market keeps selling then its better to keep raising cash. If we had hold 4750 then we were good placed. Now the situation is changed. 4750 is broken and we will quickly move to 4200. That appears to be the most likely outcome.

The push higher is less likely now. So trade less.

Thanks
Anil



Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

LIVE NIFTY CHART (Spot the buy point)

LIVE NIFTY CHART (Short Term)


Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.