Maruti Paper Trade

Maruti Technical Analysis

Today’s paper trade is on Maruti.

 Maruti Option trade sheet
My view: Bearish to sideways.
The motive of trade: Stock has formed a weekly top and should be sideways negative this week. 26th July is the quarterly result. So, Exit would be before 25th July.
Profit & loss Graph: Maximum profit will be 14500 @ 4300 strikes and  If the stock remains above 4400 then we will lose 120 rupees + brokerage. Our stop loss will be 4200. We cannot hold positions below 4200 as our loss will pick the pace after that point.
Maruti PL chart
Option graph
 Technical reason: Why I have a bearish view on Maruti because the stock has formed a bearish candle on top of a channel. Also, RSI also suggests overbought on the daily chart. See chart below
Maruti technical analysis
Maruti Daily Chart

 

Trade examples

Few Trade examples

Price action is supreme. Simplest analysis is based on simple price action following, but is it so?

Price in itself creates too much noise and challenges individuals to predict correctly the future move of a security. Trendlines can help to visually analyze a trend easily. Just try to connect two or more points in a chart and you get something to look for. However, It is not as easy as it sounds because we have to keep in mind that price is driven by forces of supply and demand. We cannot ignore the support and resistance made up on the chart.

Whenever you try to draw a trend-line, always try to find nearest support and resistance levels on that chart and try to draw in sync with those. You will surely get success. Try to look into multiple time frame and conflicting price zones. You can draw trend lines joining tops or bottoms of a stock. Draw a line where the price takes support too often or a price zone where it fails to cross most of the times. The point on exact Trend-line should not be used as a stop loss or for Buy bid because the price is noisy and there are chances it will hit your stop loss or buy order and then move into opposite direction. So, always wait for trend-line confirmation and for signs of price action in your favor.

Below I have shared few examples of trend-line based trades. Please have a look.

Also, visit the post for Channel Trading here.

HEROMOTOCORP original Buy call was given on 5th December in cash segment:
SHORT TERM CALL: BUY HEROMOTOCORP at 1820-1830, stop loss 1795 closing basis, TGT 1869-1895-1920-1950
The stock took support on a trendline and formed a base.

Result: 1912 High. All targets almost hit.

Hero Trade examples
 Another Trade examples, Satyam
trade examples

Live Trades Trading log

Live Trades Trading log

This Live Trades Log shows Live trades and is a sample of how we trade and make money.

Live trades Start Capital on 15 March 2016:  1,00,000 INR 
Present Capital: 1,26,000 INR
Disclaimer:  All trades shown are for educational purpose only.

Trade Log

 Profit/loss calculated on Starting trading capital of 1 lakh per trade.
  • All delivery based trades are in cash segment of equity markets.
  • Please visit regularly for new calls and updates.
  • E-mail us for any type of help. We will be more than happy to help you.

Continue reading “Live Trades Trading log”

NSE: JPASSOCIAT Technical Analysis

JPASSOCIAT Technical Analysis

Short Term Stock views Posted on 11 December 2012
Contra Call: Short sell jp associate at 104-104.1, stop loss 105.9 closing basis, Targets 102-99.5
Reason: Dual Trendline Resistance
Comments: jp associate has shown a very sharp up move in a very short span of time. The stock has a very strong resistance on both daily and weekly stock charts at 105.6. As you can see the stock is shown inside two channels and both channels upper trendline intersects at a point which is Resistance for the stock. Also, RSI is coming down from the overbought region. Stock can show some retracement up to the mentioned levels in few days.
JPASSOCIAT Technical Analysis
Dual channel resistance