Hello everyone!!
In my blogs, I will write about stock ideas on daily basis.
After the close of 19th August 2009, these are some stock ideas that I would like to share with all.
GMR Infra
The stock closed at Rs128.25/- on Wednesday, August 19 2009.
The stock is in a downtrend and is under performing the Indian bourses. The stock is facing huge selling pressure at every rally. The immediate support on the chart is Rs 128/-. Once this support is taken out, fresh shorts can be initiated with a target of Rs119/-. In case the stock is able to go past Rs133/- on 20th or 21st august, there is a possibility of the stock testing and even breaking the levels of Rs137/-, which is a key resistance for the stock as of now. But the overall scenario for the stock remains bearish. Only the market force can drag it upward.
Hero Honda
Even this stock is under performing the markets now. 1356 is the immediate support to watch out for while 1400 is the current resistance. At present, it seems the stock may retest the levels of Rs1400/- again, but that should not be considered a buying opportunity. Always remember, it is better to lose some gains rather than losing a large part of the capital. If the support of Rs1356/- is broken, the ray of hope is the uptrend line which is offering support at Rs 1304/- as on 19th august,2009.
Stocks that are performing in the market.
The buyers should be looking at stocks like Apollo Tyres, Binani Cement, Lanco Infrastructure Ltd. (LITL) to buy and hold. All the stocks are either forming or have just broke out of price patterns.
LITL
The stock closed at Rs398.60/- on wednesday. The stock there has given a buy signal with a stop loss below 394/- and a target of Rs415/-(risk to reward ratio being 3.5times). The next target on the chart is Rs443/-. The stock is for traders who trade daily.
Binani Cement
The strength of the stock is seen on weekly charts. The close above Rs62/- on weekly basis with increased volumes can take the stock to Rs95/-. The weekly stop loss would be Rs58/-. A stock that may offer a very high risk to reward ratio. The stock is for people with an outlook of 6-7 months.
Apollo Tyres
The stock has been outperforming the markets so far. The pattern development on the daily charts is a neutral pattern, which means the stock can give a breakout in either direction. Since, we are in an uptrend, we must assume that the breakout will happen in the direction of the trend. Therefore, a close above Rs41.5/- with increased volumes generate a buy signal. (To be on the safer side, a close below Rs39.5/- suggests going short).
Other than this, stocks like BHEL, GVKPIL are trading in a range.
While BHEL is in a broad range of Rs1958/- to Rs2350/-, GVKPIL is in a narrow range of Rs45/- to Rs47.20/-. Though there are people who may want to trade these ranges, but it is advisable to take position only after the range is broken on either side.
That's all for today. Will come up with more ideas tomorrow. In case the reader has any stock specific querry, please feel free to ask. In case, you have suggestions, they are most welcome.
Disclaimer:-
1) I do not trade personally in the stock market now.
2) Any loss suffered by the reader on the basis of above information provided does not hold the writer liable for it. Any decision to take a trade by the reader on the basis of information provided above is at his/her discretion.
In my blogs, I will write about stock ideas on daily basis.
After the close of 19th August 2009, these are some stock ideas that I would like to share with all.
GMR Infra
The stock closed at Rs128.25/- on Wednesday, August 19 2009.
The stock is in a downtrend and is under performing the Indian bourses. The stock is facing huge selling pressure at every rally. The immediate support on the chart is Rs 128/-. Once this support is taken out, fresh shorts can be initiated with a target of Rs119/-. In case the stock is able to go past Rs133/- on 20th or 21st august, there is a possibility of the stock testing and even breaking the levels of Rs137/-, which is a key resistance for the stock as of now. But the overall scenario for the stock remains bearish. Only the market force can drag it upward.
Hero Honda
Even this stock is under performing the markets now. 1356 is the immediate support to watch out for while 1400 is the current resistance. At present, it seems the stock may retest the levels of Rs1400/- again, but that should not be considered a buying opportunity. Always remember, it is better to lose some gains rather than losing a large part of the capital. If the support of Rs1356/- is broken, the ray of hope is the uptrend line which is offering support at Rs 1304/- as on 19th august,2009.
Stocks that are performing in the market.
The buyers should be looking at stocks like Apollo Tyres, Binani Cement, Lanco Infrastructure Ltd. (LITL) to buy and hold. All the stocks are either forming or have just broke out of price patterns.
LITL
The stock closed at Rs398.60/- on wednesday. The stock there has given a buy signal with a stop loss below 394/- and a target of Rs415/-(risk to reward ratio being 3.5times). The next target on the chart is Rs443/-. The stock is for traders who trade daily.
Binani Cement
The strength of the stock is seen on weekly charts. The close above Rs62/- on weekly basis with increased volumes can take the stock to Rs95/-. The weekly stop loss would be Rs58/-. A stock that may offer a very high risk to reward ratio. The stock is for people with an outlook of 6-7 months.
Apollo Tyres
The stock has been outperforming the markets so far. The pattern development on the daily charts is a neutral pattern, which means the stock can give a breakout in either direction. Since, we are in an uptrend, we must assume that the breakout will happen in the direction of the trend. Therefore, a close above Rs41.5/- with increased volumes generate a buy signal. (To be on the safer side, a close below Rs39.5/- suggests going short).
Other than this, stocks like BHEL, GVKPIL are trading in a range.
While BHEL is in a broad range of Rs1958/- to Rs2350/-, GVKPIL is in a narrow range of Rs45/- to Rs47.20/-. Though there are people who may want to trade these ranges, but it is advisable to take position only after the range is broken on either side.
That's all for today. Will come up with more ideas tomorrow. In case the reader has any stock specific querry, please feel free to ask. In case, you have suggestions, they are most welcome.
Disclaimer:-
1) I do not trade personally in the stock market now.
2) Any loss suffered by the reader on the basis of above information provided does not hold the writer liable for it. Any decision to take a trade by the reader on the basis of information provided above is at his/her discretion.
No comments:
Post a Comment