Signs of trend change in Oil and Gas Refiners

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Dear Investor,

Please observe the volume action for all of the following stock charts. These are showing increasing interest from investor community. Most of them are oversold and the action supporting trend change could be developing. This is just for your watchlist since market trend is still down so any stock purchase needs double care and scrutiny. I just wanted to highlight it for you.

Thanks
Anil
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Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.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.
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Is it time to by India Stocks?

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Dear Investor,

This is a question in every investors mind who has booked profits or losses and those who have decided to hold on to their holding even at losses. Following is weekly chart of NIFTY index. It is clear that long term trend is still intact and in fact this is a place to load up on your favorite stocks. Rather than favorite stock we should plan on adding stocks that are holding well in this correction.

Corrections are important because they show us the stocks which are truly respected by the investors and those which are only up because of hype.

In order to make a final call to buy or not, lets look at that daily chart of NIFTY below. The market has certainly stopped correcting. It has started consolidating in a narrow range, that is a good sign. It confirms our belief that correction is over. Upon closer look at the volume pattern, there is no convincing upside volume. If you carefully observe the green volume lines at the bottom of chart are shorter than the green volume lines. That means the confirmation is not there yet.

I will personally wait for volume confirmation to come in order to go long. Most of the NIFTY charts are trading below 150 day moving average line that is really not a good sign but it could be a place to start placing you bets. Being a conservative investor, I would rather wait and loose some gains than being early.

Thanks
Anil
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Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.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.
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My Analysis of why bank trade failed?

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Dear Investor,

NIFTY had a really bad sell off this Friday. I was not sure what exactly happened but a night before this happened I had almost made up my mind to cash out or exit market. Especially the Bank Stocks. It was looking pathetic situation for bank stocks. I have no idea about the reasons but charts were screaming out loud that you better exit and that is why I sent you the alert early morning. Protecting capital was prudent action for now.

The reason I was bullish is in following chart. The red arrow shows the base NIFTY had been building for quite some time since mid Nov 2010. It made a double dip pattern on very high volume. That is considered to be bullish for stocks. After a break from this pattern within two days the market reversed and new bearish stories started floating around the market. The sell off picked up mid day Friday and you all know what happened after that.

The next possible action in the market will be a short term bounce. But the base is now invalidated and we have to wait for next course of action. Now lets look at the bank stocks I was positive about and why the trade failed.

The red arrow is the top of base. I assumed that IDBI has touched the 150 day line and it has to bounce from here. Read the above statement carefully. It was a pure guesswork. There was lack of market action statement. True trade would come when the stock moves above this resistance point. I wanted to be early based on NIFTY bullish movement. Unfortunately the market did not move as thought and rest the trades failed too. That is why it is important to know your stop loss and exit when market proves you wrong. If you are a very long term trader I guess you will still be fine but be ready to see red ink for quite sometime to come.

Damaged stocks do not rally just because they are oversold. It takes time for new buying interest to build into it.

IFCI trade failed is also a surprise for me. I could have never guessed that this is what would happen to this stock. It perfectly took support around 150 day line and made double dip and now its reversing on heavy volume. Take the loss and move out. The reason I always advocate small starting position is this. It lets to test the conviction of market. If we take big position then the losses are too big to take and you get sucked into loosing trade. A 10000 Rs trade is easy to exit even after 20% loss than a 1 lakh rs trade that will bring your portfolio down quickly and probably less likely to recover that soon. Take small positions in the beginning and test your pick. If it works the trend is never one or two day thing. It runs for 3-4 weeks and probably longer.

Important change has happened to this marketplace with recent actions. The era of easy money is over. You buy any stock and market only goes up that time is no more your friend. You will have to pick your investment and cut losses sooner. 2011 will end the year lot higher than where we are today but the ride is going to be jumpy.

Check Our Current Recommendations



Thanks
Anil
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email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.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.
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Exiting Bank Stocks

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Dear Investor,

Something is seriously wrong with bank stocks. These guys must be bottoming right now but I do not want to hold on to them. The technical damage is too much. I will remove them from my recommendation list as well. Please do due diligence with your bank holdings.

Overall some corrective mood is setting up.


Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.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.
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Stock Picks Listed according to Selection Strategy

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Dear Investor,

I have made few changes to the selection portfolio for 2011. Now I will be listing stocks according to the strategy I have picked the stock. This will give you better understanding of why the stock is listed on the suggested buy list. All the picks are listed inside following link

Check Our Current Recommendations


Strategy: Stock Moving Out of Base [ My favorite strategy where stock trades in a narrow range for long period of time and then starts moving up on high volumes ]


ARVIND Arvind Limited

500215 Agro Tech Foods Limited

BHARTIARTL Bharti Airtel Limited



Strategy: Continuation Buy [ Stock which are already moved higher and there is no sign on turning back ]

532466 Oracle Financial Services Software Ltd.

500770 Tata Chemicals Limited

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Strategy: Bottom Fishing [ This is a little bit risky strategy since the stocks are below 150 day average line and most likely to give incorrect selection. But if any one of these click there is a huge upside ]

ASHOKLEY Ashok Leyland Limited

500040 Century Textiles & Industries Limited

500185 Hindustan Construction Company Limited

532832 Indiabulls Real Estate Ltd.

PARSVNATH Parsvnath Developers Limited



Strategy: Range Trade [ This is for stocks like Reliance which are dancing between a range]

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Most of the stock ideas listed are for your reference. You can pick the once which actually show green color results. The once which would not work out will be deleted by next weekend and new one will be added.
 
My selection is not for day trading. It is for a short term trading of 3 to 4 weeks and sometimes even longer than that.
 
NIFTY: Just made a new higher high which I believe as a positive sign. Software, Sugar and Chemical sectors are the best performing sectors right now. I want to wait for at least next two days to really gauge what is the next move on NIFTY.
 
Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.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.
Submit your feedback