Saturday, October 23, 2010

BREAK OUT STOCK: ESSAROIL

Essar Oil has given a break out from cup & holder formation on daily charts. Possible TGT is 173. one can buy here with SL below 142.

Also on weekly charts it has given a decent break out with good volumes one can hold the position with a deeper SL below 136 for possible higher targets.

Nifty is quite volatile these days, one should avoid short positions in nifty for the time being.

Happy Trading !
RainMaker

Saturday, September 25, 2010

BREAKOUT STOCK: MARUTI

MARUTI has given a BO on weekly charts after being in  consolidation phase for about a year.  Formation on the charts looks like a breakout from Flag.  Approx height of the flag is 1300 and long term investor / trader can buy here with price TGT of 2700 approx. keeping SL of 1126 on  closing basis. 

There was also an opportunity for short term traders as per daily charts when it broke out of 1400 range,  it is  likely to see a sharp run up from here, one should buy if it comes into trading range somewhere closer to 1400 with SL of 1380.  TGT : 1580>1715>all the way to 2700

Nifty and Bank Nifty has given a nice run up after the breakout.  Nifty is now all set for new highs.  Off-course we may see minor correction in coming days, but the trend is up for sure.

Happy Trading !

Life will never take away something without giving you something better

The cheerful girl with bouncy golden curls was almost five. Waiting with her mother at the checkout stand, she saw them: a circle of glistening white pearls in a pink foil box.

"Oh please, Mommy. Can I have them? Please, Mommy, please?" Quickly the mother checked the back of the little foil box and then looked back into the pleading blue eyes of her little girl's upturned face. "A dollar ninety-five. That's almost $2.00. If you really want them, I'll think of some extra chores for you and in no time you can save enough money to buy them for yourself. Your birthday's only a week away and you might get another crisp dollar bill from Grandma."

As soon as Jenny got home, she emptied her penny bank and counted out 17 pennies. After dinner, she did more than her share of chores and she went to the neighbor and asked Mrs. McJames if she could pick dandelions for ten cents.

On her birthday, Grandma did give her another new dollar bill and at last she had enough money to buy the necklace.

Jenny loved her pearls. They made her feel dressed up and grown up. She wore them everywhere - Sunday school, kindergarten, even to bed. The only time she took them off was when she went swimming or had a bubble bath. Mother said if they got wet, they might turn her neck green.

Jenny had a very loving daddy and every night when she was ready for bed, he would stop whatever he was doing and come upstairs to read her a story. One night when he finished the story, he asked Jenny, "Do you love me?" "Oh yes, Daddy. You know that I love you." "Then give me your pearls." "Oh, Daddy, not my pearls. But you can have Princess - the white horse from my collection. The one with the pink tail. Remember, Daddy? The one you gave me. She's my favorite." "That's okay, Honey. Daddy loves you. Good night." And he brushed her cheek with a kiss.

About a week later, after the story time, Jenny's daddy asked again, "Do you love me?" "Daddy, you know I love you." "Then give me your pearls." "Oh Daddy, not my pearls. But you can have my baby doll. The brand new one I got for my birthday. She is so beautiful and you can have the yellow blanket that matches her sleeper." "That's okay. Sleep well. God bless you, little one. Daddy loves you" And as always, he brushed her cheek with a gentle kiss.

A few nights later when her daddy came in, Jenny was sitting on her bed with her legs crossed Indian-style. As he came close, he noticed her chin was trembling and one silent tear rolled down her cheek. "What is it, Jenny? What's the matter?" Jenny didn't say anything but lifted her little hand up to her daddy. And when she opened it, there was her little pearl necklace. With a little quiver, she finally said, "Here, Daddy. It's for you."

With tears gathering in his own eyes, Jenny's kind daddy reached out with one hand to take the dime-store necklace, and with the other hand he reached into his pocket and pulled out a blue velvet case with a strand of genuine pearls and gave them to Jenny. He had them all the time. He was just waiting for her to give up the dime-store stuff so he could give her genuine treasure.

Are you holding onto things that you should let go off. Are you holding on to harmful relationships, habits and activities which you have come so attached to that it seems impossible to let go? Sometimes it is so hard to see what is in the other hand but do believe this one thing.............

Life will never take away something without giving you something better in its place.

-Author Unknown

Friday, August 27, 2010

Warning Signs on BANK NIFTY


Bank Nifty has made an all time  High of 11110.95 (Futures)  and is now down to 10741.  Price candle has formed a Dark Cloud Cover  RSI is over bought and STS is giving a sell in the OB region.



Although the BNF is in uptrend but all this reminds you to be on your guards.  10250-10200 is the key level to watch.  If Bank Nifty fails to take support at these levels and drops further down  we can see the formation of Wolve Wave on the weekly charts  point 5 & 6 are marked on the charts we can see levels as low as 8000 approx.

The above view holds if we happen to close below 10200.  The chart posted is weekly chart for Bank Nifty.

Happy Trading !

Monday, August 23, 2010

BREAKOUT STOCK

Mercator Lines (MLL) is on the verge of breakout. Keep a close eye once it closes above 55.00 take a long position.

It can TGT 56.75 > 60.40>62.75>72.10 
Short Term SL 52.20
Mid Term SL 49.60

As I write this it is trading at 54.55 with 1.1 million shares already traded.  Suggestive of positive closing at the end of the day.


Happy Trading !

Friday, August 13, 2010

JESSE LIVERMORE ON TRADING

Speculating

If somebody had told me my method would not work I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money. And I am only right when I make money. That is speculating.

Entry

When I’m bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don’t buy long stocks on a scale down, I buy on a scale up.

Loss

A loss never bothers me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does damage to the pocketbook and to the soul.

Risk

If all I have is ten dollars and I risk it, I am much braver than when I risk a million if I have another million salted away.

Personality

Every stock is like a human being : it has a personality – a distinctive personality – aggressive, reserved, hyper, high-strung, volatile, boring, direct, logical, predictable, unpredictable. I often studied stocks like I would study people; after a while their reactions to certain circumstances become more predictable.

Tuesday, August 3, 2010