July 28, 2014

Market outlook

Consider trend as up as long as nifty trades above 7450 spot.

July 27, 2014

Triangle formation in OIL stocks

Oil stocks are showing similar chart patterns... wait for breakout and trade in direction of breakout.


Magnified close AFL

July 26, 2014

Support and resistance AFL for day traders

This AFL will plot support, resistance and pivot levels on intraday charts. For the formula and some theory on this, visit this wikipedia link.

This is the way the indicator looks when plotted on a chart.

Question on position sizing

Question: Suppose Two stocks have buy signal having price of Rs 100 each. Now one stock has Rs 1 SL, so I hv to buy 1000 shares and second stock has Rs 5 SL, So I hv to buy 200 shares. Am I Right ? But how can I make money management ? because one stock has buy value of Rs. 1 Lakh and second has buy value of Rs 20,000 only ?


July 25, 2014

Pharma stocks

Some pharma stocks are moving up even as broader market is stagnant/ weak.

Weekend update

On weekly charts, trend is up with support at 7450 spot.

July 24, 2014

Buy signals and position sizing

Latest buy signals are posted below. These are evidenced by "trade" column showing as 1.

I have added suggested quantity and the investment columns. This assumes a risk per trade of Rs.1000/- (1% for a trading capital of INR 100,000)... the investment is nothing but the quantity multiplied by the closing price.

As you can see the highest investment of 18K is in NIFTYBEES as stock is close to SL whereas lowest is in TATAMETALI (Rs.2000) - this is because the stock has rallied 40% AFTER the first buy signal so SL is very deep.

In both cases, if the SL gets hit in 48 hours the loss will be Rs.1000/- per trade.

Open positions

These are our recent open positions... most of these have already been published in this blog or at the vfmdirect site.

Market outlook

Trend is up as markets close at new high. Advance decline was flat.