Namaste - My Learning of Trading in Nifty
- Thread starter crown
- Start date
I have learned that It is very necessary to have some favorite scripts, trading in which is more comfortable. Thanks to all Big Bros over here specially Praveen Bhai, Rajput Bhai, AW bhai, Raj Bhai for guiding me.
So, I have found the following scripts to be kept under my favorite folder at present. I will be adding/subtracting it, as and when needed.
Bhel
Rel Infra
Hindalco
Hind Uni
LT
Ranbaxy
Tata Motors
Tata Steel
Cipla
Fed Bank
Hero Honda
Lic Housing
Mphasis
JP Asso
SAIL
Sesa Goa
Jindal Steel
Syndicate Bank
Bharti
Canara Bank
Sterlite
Suzlon
Punj Lloyd
GMR Infra
Rel Power
Tech M
Power Fin
Reliance
From today onwards, I will be putting on board, my learning experience and my understanding of these scripts w.r.t its present as well as expected future movement.
May be, this can help me in better understanding.
So, I have found the following scripts to be kept under my favorite folder at present. I will be adding/subtracting it, as and when needed.
Bhel
Rel Infra
Hindalco
Hind Uni
LT
Ranbaxy
Tata Motors
Tata Steel
Cipla
Fed Bank
Hero Honda
Lic Housing
Mphasis
JP Asso
SAIL
Sesa Goa
Jindal Steel
Syndicate Bank
Bharti
Canara Bank
Sterlite
Suzlon
Punj Lloyd
GMR Infra
Rel Power
Tech M
Power Fin
Reliance
From today onwards, I will be putting on board, my learning experience and my understanding of these scripts w.r.t its present as well as expected future movement.
May be, this can help me in better understanding.
First One is Bhel
Here is its Weekly Chart.
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This is weekly chart of Bhel
Seem to have taken resistance at 2545 and going down
Since April 2009, Bhel appears to be moving in a range
and within this range, it made some kind of triangle/penant like formation.
Its trend line support seems to be around 2300 while the parallel suport from which it started moving up from the end of May 2010 is 2230.
Current close on weekly basis is 2386; and it is moving down.
If I have to short it, I need to have a stoploss of 2545 i.e. around 160 rupees. While it may take support at 2300 or 2230 levels.
Because it is moving in a trend, the chances of taking support around 2300 are more; and therefore, the risk will be double of the expected gains of 80.
Therefore, I will keep watch on this and if it moves down around its support levels, I can look for going long in it.
Till then, just keep watching.
Below is the daily chart of Bhel
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The script faced resistance at 2545 (shown with the red Arrow) but also kept taking support near 2460. The candles are self-explanatory for me to not to take any short trade, despite finding the good resistance point. Because, the counter moves towards upside are also scary which could have made me square off my trade before it actually started going down after breaking the support around 2460 levels.
A Closer look at the CCI is indicating that it is just going to take support before starting its move towards either side i.e. it may go down or go up. I dont know. But the script is really not easy to trade at these levels because of capped upside and downside moves. But, it will be worth watching, how it goes. I am expecting it to take support above 2350 before giving any further signal of going in either direction.
Here is its Weekly Chart.
Uploaded with ImageShack.us
This is weekly chart of Bhel
Seem to have taken resistance at 2545 and going down
Since April 2009, Bhel appears to be moving in a range
and within this range, it made some kind of triangle/penant like formation.
Its trend line support seems to be around 2300 while the parallel suport from which it started moving up from the end of May 2010 is 2230.
Current close on weekly basis is 2386; and it is moving down.
If I have to short it, I need to have a stoploss of 2545 i.e. around 160 rupees. While it may take support at 2300 or 2230 levels.
Because it is moving in a trend, the chances of taking support around 2300 are more; and therefore, the risk will be double of the expected gains of 80.
Therefore, I will keep watch on this and if it moves down around its support levels, I can look for going long in it.
Till then, just keep watching.
Below is the daily chart of Bhel
Uploaded with ImageShack.us
The script faced resistance at 2545 (shown with the red Arrow) but also kept taking support near 2460. The candles are self-explanatory for me to not to take any short trade, despite finding the good resistance point. Because, the counter moves towards upside are also scary which could have made me square off my trade before it actually started going down after breaking the support around 2460 levels.
A Closer look at the CCI is indicating that it is just going to take support before starting its move towards either side i.e. it may go down or go up. I dont know. But the script is really not easy to trade at these levels because of capped upside and downside moves. But, it will be worth watching, how it goes. I am expecting it to take support above 2350 before giving any further signal of going in either direction.
Next Patient is Reliance Infra
Weekly chart of Reliance Infra.
Uploaded with ImageShack.us
This indeed a very weird chart for me. In April 2009, it has very good volumes and almost got triplled within couple of months.
But, afterwards, it is trading between a range; or to be more precise, for me it is trading in double range.
Its support level is around 950 and it is having resistance at 1200 and 1400. Off course, the primary resistance it at 1200 which has to be crossed over, before I can think of this script to show its power of going up, if it really has any.
Currently, on weekly basis, it is trading at 1033 levels; quite near to its support levels.
It made a low of 980 during the previous weak and now appearing to have taken support.
But still I am not ready to enter long. Because, this is the 6 or 7 time, it is going to test its support levels since july 2009. While the market has been trading at its high, this script is still struggling in maintaining its support. And, I can not explain it in words, but in my mind, I have an opinion that may be this time, it may violate its support levels, specially if Nifty goes down. But, anything can happen; and it is really not wise to predict. In case, the script accept the support, I will try to enter long; but with a very cautious approach of not expecting huge profits.
Now the daily chart of Reliance Infra
Uploaded with ImageShack.us
This is the first time since mid July 2010 that CCI(14) manages to be in positive zone (6 points). All previous attempts of this script failed in this regard. Appears to have taken reasonable support at 980 levels and currently having upside move with reasonable support of volumes. Can this be a good entry point for going long in this script. I am a little bit confused and scared to enter at these levels.
Reason one - Almost everytime, when this script came down to these levels, it did tested its support at 950. Therefore, this time too.
Reason Second - Markets are at their highs; and many are expecting a downside move in Nifty. In case, that happens, the script may have to face the overall negative sentiment
Reason Third - I can not explain, but I am scared that it is very likely to violate its support levels of 950.
Therefore, just be watching this script too.
Big brothers, please do give your guidance and advice on this amateur analysis of mine.
Weekly chart of Reliance Infra.
Uploaded with ImageShack.us
This indeed a very weird chart for me. In April 2009, it has very good volumes and almost got triplled within couple of months.
But, afterwards, it is trading between a range; or to be more precise, for me it is trading in double range.
Its support level is around 950 and it is having resistance at 1200 and 1400. Off course, the primary resistance it at 1200 which has to be crossed over, before I can think of this script to show its power of going up, if it really has any.
Currently, on weekly basis, it is trading at 1033 levels; quite near to its support levels.
It made a low of 980 during the previous weak and now appearing to have taken support.
But still I am not ready to enter long. Because, this is the 6 or 7 time, it is going to test its support levels since july 2009. While the market has been trading at its high, this script is still struggling in maintaining its support. And, I can not explain it in words, but in my mind, I have an opinion that may be this time, it may violate its support levels, specially if Nifty goes down. But, anything can happen; and it is really not wise to predict. In case, the script accept the support, I will try to enter long; but with a very cautious approach of not expecting huge profits.
Now the daily chart of Reliance Infra
Uploaded with ImageShack.us
This is the first time since mid July 2010 that CCI(14) manages to be in positive zone (6 points). All previous attempts of this script failed in this regard. Appears to have taken reasonable support at 980 levels and currently having upside move with reasonable support of volumes. Can this be a good entry point for going long in this script. I am a little bit confused and scared to enter at these levels.
Reason one - Almost everytime, when this script came down to these levels, it did tested its support at 950. Therefore, this time too.
Reason Second - Markets are at their highs; and many are expecting a downside move in Nifty. In case, that happens, the script may have to face the overall negative sentiment
Reason Third - I can not explain, but I am scared that it is very likely to violate its support levels of 950.
Therefore, just be watching this script too.
Big brothers, please do give your guidance and advice on this amateur analysis of mine.
next Candidate is Hindalco
Uploaded with ImageShack.us
This also is a very challenging chart. Or, may be all charts are challenging till I start understanding them in proper way.
On weekly chart, there was very good support taken on the week ending 11 June 2010 (denoted by Red arrow). The volumes were also very good and the script started moving up after a steep fall. Therefore, it can be presumed with some confidence that the script is still maintaining its upside movement. Currently, the script is taking support at 160 levels. While the recent resistance appears to be at 189. The big red candle and the recent candle is denoting some amount of pressure from the upside. Therefore, I am a little bit unconvinced of entering long in this script at current levels. While, if it comes down near to 152 levels, where I am expecting some trendline support and give some positive momentum and move, I will think about entering long in this script. Overall, the script is not weak at all on weakly basis.
Now, the Daily chart of Hindalco.
Uploaded with ImageShack.us
In the daily chart, Hindalco has seem to have taken support at 160 and after a good upside move, three days ago, we have two small red candles showing a little bit of consolidation phaze. But what is scaring me for going long in this chart, is the movement/candle of 19 August 2010; shown with red arrow. The volumes were high on that day and the script has accepted the resistance of 180. Currently, the script is trading at 170 and having a capped upside at 180. While the stoploss for entering long at here will also be 10 rs i.e. 160. Therefore, the chart is so-so at present levels to enter long.
While, as such it has already accepted the resistance at 180 levels; if the script goes up and show some resistance around/below 180 levels, that would be much better place to enter short for a downside move of 160 around. Or if the script goes down from this level and closes below 166.50, entering short can be considered accordingly.
But for now, I will be watching this script too.
Uploaded with ImageShack.us
This also is a very challenging chart. Or, may be all charts are challenging till I start understanding them in proper way.
On weekly chart, there was very good support taken on the week ending 11 June 2010 (denoted by Red arrow). The volumes were also very good and the script started moving up after a steep fall. Therefore, it can be presumed with some confidence that the script is still maintaining its upside movement. Currently, the script is taking support at 160 levels. While the recent resistance appears to be at 189. The big red candle and the recent candle is denoting some amount of pressure from the upside. Therefore, I am a little bit unconvinced of entering long in this script at current levels. While, if it comes down near to 152 levels, where I am expecting some trendline support and give some positive momentum and move, I will think about entering long in this script. Overall, the script is not weak at all on weakly basis.
Now, the Daily chart of Hindalco.
Uploaded with ImageShack.us
In the daily chart, Hindalco has seem to have taken support at 160 and after a good upside move, three days ago, we have two small red candles showing a little bit of consolidation phaze. But what is scaring me for going long in this chart, is the movement/candle of 19 August 2010; shown with red arrow. The volumes were high on that day and the script has accepted the resistance of 180. Currently, the script is trading at 170 and having a capped upside at 180. While the stoploss for entering long at here will also be 10 rs i.e. 160. Therefore, the chart is so-so at present levels to enter long.
While, as such it has already accepted the resistance at 180 levels; if the script goes up and show some resistance around/below 180 levels, that would be much better place to enter short for a downside move of 160 around. Or if the script goes down from this level and closes below 166.50, entering short can be considered accordingly.
But for now, I will be watching this script too.
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