Book profit on NIFTY put

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This week there could be fire crackers on both side of the 5200 level. Last week I suggested NIFTY put and I hope many were able to take advantage of that call. I recommended small position because it was not really predictable.

Last time when market was in downtrend. It bottomed on Budget and Election results. Downtrend of NIFTY as clear as it can be, now the buying is only happening because of panic buy or panic sell and those moves are wild. It would make sense to buy a call option and put option to play move on both sides. But that is a tricky move. For rest of us, we should let the market play its game this week and come back in discuss next move next week.

Thanks
Anil
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Book Proft and Buy NIFTY Put Option

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Dear Investor,

Most of the stocks have reached resistance point in just one week. Lets grab out gains and move on sideline. We gained almost 5% average gain all the positions recommended last week. Now we need to give some time to digest its gains.

If can risk little bit money that you might not mind loosing, then it is good idea to buy 1 or 2 NIFTY 5500 put option. Do not pay too much. Its highly speculative bet. HINDALCO appears to break down soon.

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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Stocks that probably bottomed on Feb 11 2011

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Identifying a bottom in any stock is a very tough task. Its like walking on a wire without any balancing bar in your hand. So only choice investors have is to jump in with a stop loss. There are signs of possible bottom in this current correction we have seen.

"Bottoms are formed when everyone is negative and they just hate stocks."

We have not see that kind of hatred in current market. Even though sell off has happened, it is orderly. There is no panic selling yet. So it is possible that we are observing fake bottom. Lets discuss few opportunities now.

Please add following stocks to your watchlist

Axis bank

Axis bank stock has been under constant accumulation even though stock been under downtrend. You need to observe the amount of volume in green colour. Its very high. This makes me conclude it is under accumulation. It appears that it is building base and will take some time to come out of base until the sentiments turns really bullish. It would be a good point to enter for those who wanted to enter this script.

HDFC

HDFC is at long term support line. Red dotted line is 400 day moving average line. HDFC has been holding line. What makes it interesting to buy now is two large volume accumulation days. It has put in a bottom at 588 level. So it becomes a stop loss point too. Upside is not very compelling in this script but wanted to discuss it because this is a low risk entry point on it.

IDFC

IDFC has been in perfect bear market setup. This is one stock that we can call as speculative trade. It has really been sold of very hard very similar to DLF. The reason it is on buy block is because people hated is two days ago. They sold it like it was hot burning coal in their hand, in other words there was a panic sell day on this stock. After panic sell, observe two heavy volume accumulation days, it says it all. Must exit if it closes below 120.

Jindal Steel

It is close to long term support line. Its a range bound stock and right now it is close to its support line. It will be a speculative investment. Stop loss on this is 600.

Kotak Bank

Kotak Bank has also seen panic sell off day and huge accumulation days.

Similar is story with Larsen and Toubro.

Same story of Mahindra and Mahindra

Overall many NIFTY components are witnessing supportive action that is a good point to buy NIFTY ETF too. That way you minimize your risk and participate in upcoming rally.


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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Coming This Weekend - How to find bottom?

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Dear Investor,

This weekend I will be posting strategies about How to identify bottoms?

Guessing bottoms does not work! It will never work.

You need a plan and knowledge to identify bottoms.

Following stocks are on my watchlist for next week action only after market turns positive
1. NIFTY ETF
2. IDFC bank
3. KOTAK bank
4. ICICI bank
4. Larsen and Toubro

Speculative bids to play the game next week
5. Reliance Communication
6. Suzlon


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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FII going back home

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Dear Investor,

My observation is FII funds are going out of markets. US and Europe markets are going up. What does a common sense tell you? I feel, FII is returning back home. They are taking money back to hometown and want to invest in cheap markets of their own. India markets were overvalued but were not easy to correct. Finally they have started to correct.

Look at FII fund flows. Its not important that negative fund flows are increasing; what is important that they have stopped investing into the market. They kind of provide floating support to our markets. It will return and it will return when stocks are cheap and hated most and nobody wants it.

NIFTY outlook

People have already started guessing bottoms. We have arrived at a point of maximum support. This support around 5300 has to hold. It has to hold. What is expected to happen is when 5300 is broken huge mass selling will kick in. If we close more than 4 days below 5300 then it is your shorting opportunity. At this support line of 5300 all the shorts have to be really really cautious becase a dead cat bounce cannot be ignorred and shorts will be burned.

I am not looking to short, in fact I am waiting for my entry point. If the market continues to hold 5300 and we see high volume upside days, it will rally but I do not want to guess. I want to see it unfold. Market is nobodies friend it can change direction at any moment or continue its current fall for time to come. There is no need to guess bottoms. Let the market show it to you. I am with bullish mindset hence looking for entry point but will not enter until market turns around. I can't guess. Guessing has burnt me many time and I do not want to experience again.

Some ideas for shorts if market continues it flow down

HDFC at its long term support and any close below 580 should be taken as shorting opportunity
ICICI is a good short if it closes below 940
IDFC is in full breakdown mode, its a good short right now just be careful a close above 146 you must exit your short.
Kotak bank below 350 is a great short


Real panic selling has just began in almost 70 percent of NIFTY stocks. People who were not willing to book profit are now willing to book losses and save whatever is left. It will be a great buy point, may be the last great entry point before we zoom to new highs. Be careful be safe. Don't play short if don't know how to do it.

True buy point to come after market closes above 5500 and stay there for few days.
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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