How to Design an Effective Trading Plan

Success is defined by the achievement of pre-established goals.

The key to becoming a successful trader is identifying, quantifying, strategizing, implementing, tracking, analyzing, learning and growing as a conscious person.
You see, there is no such thing as “easy money”. Let’s get this upfront right now, trading is not easy and not for just anybody.
How many people do you know who have an idea of what they want out of life?
How many people do you know who understand what makes them happy and what fulfils their needs?
Probably not many and this is …
Read the full story »

Nifty Expiry Range for April Series

Nifty Hourly Chart
Nifty Hourly Charts are showing selling near the falling trendline and now breakout has come on a close above 5905.On Hourly chart Nifty is SELL till it does not close above 5853 levels.As Nifty is Still trading above 5833 which is close of Last Expiry it is positive for BULLS. This Expiry has neither belong to Bulls and Bears.

Nifty Daily Chart
On Daily Chart also Nifty has generated a SELL with a close below 5 EMA CLOSE@5847 and hence close above 5847 and 5887 are important for BULLS to …
Read the full story »

Technical Call:Infosys,Bank Nifty and Jet Airways

Jet Airways
Jet Airways is forming Higher Low and facing resistance around upper trendline @498 as shown in daily charts. Volumes have been muted for past 2 trading sessions.
Once Stock starts trading above 498 it can easily go till 520 levels.

Buy above 498 Tgt 500 and 507,514 and 520

Sell Below 497 Tgt 491 and 485

Bank Nifty
Bank Nifty have been trading in a channel with resistance at upper trendline @11980. Move above this level will propel BN to 12200 level.
BN is forming a higher Lows and moving in parallel channel.
Indicators …
Read the full story »

Technicals on HUL and Axis Bank

AXIS BANK

Axis Bank is facing trendline resistance at 1461 from past many trading sessions as shown in chart below.Axis is trading in range of 1150 to 1460 and need some booster to break on the higher end of the  range.

Results were a good Booster and Stock should close above 1461 and give a spurt in both price and volume action.
Positive Divergence is observed in RSI ,Stochastic in BUy mode.
Buy above 1461 Tgt 1476,1500 and 1535


Hindustan Unilever

HUL has crossed above its 200 DMA with volume marking its entry in BULL region,next …
Read the full story »

Nifty Technical Levels For Expiry Week

Nifty Hourly Charts
Nifty Hourly Charts are trading in a Range of 5944 0n Higher end of trading range and 5700 on lower end of trading range.We have been trading in this range for almost whole April Month.
After a Big Bang rally in March which took everyone by surprise we are now consolidating the gains and making base for higher levels.
As such Positional Trades should only be taken on break of the range else we need to trade the range.
TCS results were good and RIL were OK so we need good …
Read the full story »

Are you prepared for trading?

Are you prepared for trading?

Nifty moved up 135 Points on Wednesday fell 100 points on Friday and today gave a wild swing of almost 200 points from days high.
How many traders were able to make good points from that or lost money both ways.
Please answer the below mentioned questionnaire and be true to yourself

Are you prepared for trading?

Ask yourself the following questions:

Read the full story »

Hindalco and Jindal Saw Technical Views

Hindalco Industries

Hindalco Industries forming rising base and moving into resistance zone 217-219 range .Stock closed above 5 EMA High which signifies the upward momentum today.
MACD is moved into buying zone and Stochastic has moved into buy zone which make case of buying for short term

Buy above 215.3 Tgt ...

Jindal Saw
Jindal Saw is touching its upper end of its trendline and looks like ready for breakout as it has closed above its 5 EMA High
MACD has turned into buy and Stochastic is on verge of giving a BUY
Buy …
Read the full story »

Breakout Trades:ZEE Limited and Pipavav

PIPAVAV Shipyard

Pipavav Shipyard has been trading in a range from past many trading sessions as shown in below charts.
Stock has technically broke out of the range as per Breakout Trading System and secondly closed above its 200 DMA @88.8 on huge volumes which is again a Bullish instance for the stock.
Buy above rs 90 Tgt

 Read the full story »

Nifty Weekly Technical Levels

Nifty Hourly Chart
Nifty Hourly chart are in oversold zone with the correction which was witnesses in last 2 trading sessions. On Hourly we are moving in  a trendline channel with upper range of 5944 and lower range 5650 in immediate short term.
RSI and SLow Stochastic are in Oversold zone but I keep on telling Indicators can remain overbought and oversold for a long period of time.
Nifty Daily Chart
Nifty Daily Charts are into 2 parallel channel as shown in the chart.Yesterday close threatened the move below 200 DMA where if we …
Read the full story »

Are you prepared for trading?

Nifty moved up 135 Points on Wednesday fell 100 points on Friday and today gave a wild swing of almost 200 points from days high.

How many traders were able to make good points from that or lost money both ways.

Please answer the below mentioned questionaire and be true to yourself

Are you prepared for trading?

Ask yourself the following questions:
1. Do I treat my trading/investing like a business? Have I prepared for it the way I would for a business?

Read the full story »

Infosys mauled by bears Will Bulls comes for rescue?

Infosys Hourly Chart

Infosys corrected by almost 10% on Friday after announcing its results and to add to it the Resignation of Mr Pai from Infy.Both took toll on Stock Prices and Infy crashed.

Looking at hourly charts Falls look overdone and bounce back should come in next week.
Low of 2970 holds the Key if it is not broken on Monday Infosys can again move to higher levels. 

Infosys Daily Chart

On Daily chart we see multiple supports@2940 range which should provide support if 2970 gets broken.

Retracement

Looking at Retracement of Fridays fall

Infy Buy above @3039 Tgt 3077 and 3108

Nifty and Bank Nifty Technical Levels for 15 April

Nifty Hourly Charts
Nifty showed a tremendous move on Wednesday after 5 days of downfall
Nifty Hourly Charts moved back to buy as per the trading system and also moving into a vertical channel.
As said in Nifty Weekly Analysis 5777  on closing basis should be SL for longs.
Always give preference to Higher Time frame(Weekly) above daily and Hourly for your trading decisions.
Now looking at Hourly chart we are trading in channel and move above 5923 can take us to 5945 and 6000 levels

Nifty Daily Chart
On Daily Charts we are facing …
Read the full story »

How to become a profitable trader

Trading is a profession which requires a person to be disciplined, control over his emotion, risk management.
90% of Traders fails in this profession only 10% excel.

So what makes trading so difficult?
I have compiled few rules which you should adhere with and read it daily when you had a bad day.
These are some of the trading rules which are universally valid for stock/commodity trading.
Take a print out and nail it on your trading desk.
Never risk more than 10% of your trading capital in a single trade:Try to distribute your trading capital …
Read the full story »

Technical Calls:JP Associate and Larsen

Jai Prakash Associate

Traders favorite staged a nice rally from low of Rs 70 to high Rs 98  from the oversold zone.As seen from Daily charts stock is on a crucial levels now at its support of Rs 91.4
If 91.4 gets broken than stock can move till low of channel as shown in chart.
Formation of Higher Low and Higher Highs are visible on daily chart which is bullish for short term
For tomorrow Trading
Sell Below 91.4 Tgt 89.35,88.7 and 87.8

If 87.35 is broken on closing basis Exit short term longs held.

Larsen


Read the full story »

How to trade using Trend Lines in Stocks Charts

TREND LINES
Technical analysis is built on the assumption that prices trend. Trend lines are an important tool in technical analysis for both trend identification and confirmation. A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. A proper trend line has to connect two or more peaks or troughs; otherwise, it will be drawn
in space and will have no significance.
UP TREND LINE
An uptrend line has a positive slope and is formed …
Read the full story »

Nifty Weekly Technical View

Nifty Hourly Charts
Nifty Hourly chart is giving a SELL call as per our 5 EMA and 20 SMA system.Sell was generated at 5910 levels.Hourly overbought is getting corrected and slowly indicators are moving to oversold zone. On Hourly charts  Nifty is forming a FLAG pattern formation which is low of 5822 is held can move till heigh of pole ie. 68 points.


Target of Flag Pattern should be 5860+68=5928

Nifty Daily Chart
On Daily charts we have broken the daily channel we were trading from 5400 levels which is a bearish indication.
The trendline …
Read the full story »

Breakout Trading System

What Is a Breakout?

A breakout is a stock price that moves outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support. Once the stock trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout’s direction.
In Stock Market terms a Breakout in a index/Stock Signify moves outside a definite resistance/Support Levels on an increased volume. It’s …
Read the full story »

Technical Views:HDFC Bank and Hero Honda

HDFC BANK
HDFC is moving in a trendline channel as shown in above chart. Buying should be done only a sustained move above 720.
ON Daily Charts RSI and Stochastic are in overbought zone.
 
Stock will enter into uncharted terrotiry after a move above 720
Buy above 720 TGt 728,735 SL 715

Sell below 715 TGt 709,702 and 696

Hero Honda
Hero Honda has been moving in a channel from low of 1413 to high of 1708. Stock has been making higher high and Higher low formation on daily charts and continued with its upmove.
As per daily …
Read the full story »

Nifty Views for 07 April

Nifty Hourly Chart

Nifty Hourly charts with a combination of 21 EMA is shown.Nifty on hourly chart has broken the channel and took support at its 21 EMA.
On Hourly Charts Nifty has become SELL as it has closed below its Hour High EMA@5907. Watch out 21 EMA on hourly chart any close below it will make nifty bearish for short term.

Nifty Daily Chart

As per Nifty Daily chart we have hit the resistance line at todays high of 5944  and with a formation of spinning top candelstick formation.
Spinning top are bearish in …
Read the full story »

Technical Calls:Tata Steel and Hindalco Industries

Tata Steel

Tata Steel daily has formed Hanging Man Candlestick on Daily charts.

Hanging Man

A bearish candlestick pattern that forms at the end of an uptrend. It is created when there is a significant sell-off near the market open, but buyers are able to push this stock back up so that it closes at or near the opening price. Generally the large sell-off is seen as an early indication that the bulls (buyers) are losing control and demand for the asset is waning.
If we look at Daily …
Read the full story »

Technical Views on AB Nuvo and Kotak Bank

AB Nuvo

AB Nuvo has been trading in the range of 715 to 849 from past 2-3 months.
AB is now hitting the upper range of its trading range on low volumes which make the case of short sell

Looking at momentum indicators RSI is in overbought zone which also adds strenght to our short views

Sell around 849 TGt 842,834,827

Kotak Mahindra Bank

Kotak Bank is forming a double top pattern which has bearish implication at 465 and Inverted Head and shoulder pattern with neckline at 465 which is having bullish implication.
In nutshell 465 …
Read the full story »

Nifty Weekly Technical for April 2 Week

Nifty continued its upward journey fulled by FII inflows and clocked up another 3% gain for the week.After 8 days of rally Nifty finally closed in red this friday.Nifty has been on dream run taking everyone by surprise but this is how market dynamics. Market always does the unexpected .

Hourly Charts

On Hourly chart immediate resistance is 5865 expiry day high this should be taken out next week for further upside,If market is unable to break this level than we will make a double top and it will be a case …



Read the full story »

How to become a profitable trader

Trading is a profession which requires a person to be disciplined, control over his emotion, risk management.

90% of Traders fails in this profession only 10% excel.

So what makes trading so difficult?
I have compiled few rules which you should adhere with and read it daily when you had a bad day.
These are some of the trading rules which are universally valid for stock/commodity trading.
Take a print out and nail it on your trading desk.

• Never risk more than 10% of your trading capital in a single trade:Try to distribute your trading capital in different trades. Do not risk it in single trade .

• Always use stop loss orders: Never keep mental stop loss because as soon as your SL will hit your emotions will take over you and will never exit the position.

• Never do overtrading. Do not overtrade if you are doing extremely good to make more money or extremely bad to recover your losses. Either you will lose all your profits or will add more losses to your existing losses.

• Never let a profit run into a loss: Most of traders will let your profit turn into loss because of GREED.

• Don’t enter a trade if you are unsure of the trend.

• When in doubt, get out, and don’t get in when in doubt: It’s your money at stake so if you are in Doubt never trade.

• Only trade active stocks: Trade in Stocks having liquidity.

• Never average a loss: Loss should never ever be averaged. If you are in Loss means you did not made a right trading bet.Exit the losing trade asap.

• Never get out of the market because you have lost patience, or get in because you are anxiously waiting.

• Avoid taking small profits and large losses:90% of traders who loses will exit when Stocks moves 1% in their favor and if it moves even 5% down from purchase exit is out of sight.

• Never cancel a stop loss after you have placed it.

• Avoid getting in and out of the market too soon.

• Be willing to make money from both sides of the market: Do not have one sided mentality. As a trader your job is to earn money, It does not matter you trade long side or short side.

• Never buy or sell just because the price is low or high: Unitech went down 10% lets buy it. Nifty went up 200 points lets SELL it. Well if things were so easy everyone will make money. Trading never works in this way.

• Never hedge a losing position.

• Avoid trading after long periods of success or failure.

• Don’t try to guess tops or bottoms.

• Don’t follow a blind man’s advice.

• When you lose don’t blame it on luck.

The Most important aspects of trading is you need to have a Trading System.

I have interacted with many traders and one common mistake I have observed is

NO ONE TRADES WITH A TRADING SYSTEM.

Most of traders buy because they feel like buying and sell because they feel like selling. If one follows this approach you will never earn in stock market.

I have developed few trading system which will help traders to go with an organized approach with market and will be able to do a disciplined and organized trading which will have a profitable outcome.

If interested do contact me on 09985711341

Technical Calls:BHEL,Ranbaxy and ITC

BHEL

BHEL is consolidating between its 50 SMA and 5 EMA.I have tried to show similarity in this pattern which was formed before also in the 2 rectangle in below chart.
BHEL is consolidating and looks ripe for a sell below today’s low.Stochastic has given a SELL

Gap between 2055 and 2051 also needs to be filled.

Sell below 2055 Tgt 2046,2030 and 2004

Ranbaxy

Ranbaxy is moving into parallel trendline channel and facing resistance at upper trendline channel.



Read the full story »