BHARTI AIRTEL: Grab it !

Bharti Airtel is ruling at 314. As you can see it is forming a strong bullish invert head and shoulder pattern.
Above 336, it will catch fire and confirm the pattern. A fast surge could add another 40 bucks then after ultimately crossing 400 in days.

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2.     You want to build a long term portfolio for your family and kids

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4.     You want to participate and benefit from the Indian economy and growing stock markets

5.     You have a certain risk capital and you want to try it on stock/commodity trading

6.     You are a full time trader or want to be a full time trader

7.     You are broker or stock market professional

…then you are definitely a smart person!  

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TATA CHEMICAL: It's not looking good this time

TataChem has strong support at 290-300 level. Below that freefall will take it below 250 in few sessions and even 5-15% intraday cuts possible. Investors should hang on still as the fundamental of the company are intact.
Sell only if sustains below 299 and gives close on weekly basis.
Then after sell on every rise as far as it remains below 299.
299 is its multiple bottom support level. The analysis of MACD, and RSI are convincing this time that it will break this level and go down to make new 3-4 years low. Previously on more than 4 ocassions it took support at this level due to recovery n MACD and RSI variables.
While if it starts consolidating at this level then may rise well above. So follow all notes.

This stock can fall further down. Exit investments

ICRA LTD. is ruling at 993 levels. It has been over 1500 without any fundamental reason.
We see the stock price weak in next few months or even for more than a year from now on.
Exits from investment based positions are recommended.
The stock is a 100% exit if breaks 975 level. And closes below 955 on weekly basis.
It will take support at 790 only then after.
In the given chart you can see how it risen with support of a cup and handle pattern span over 1.5 years.
Below Rs.790 it will halve from the current levels.
The 975 level is a most important double bottom support level.

We can relate the stock possibly resuming downtrend with a fundamental development of the company trying to expand in to European markets by recent tie up with a Portuguese rating firm.

STATE OF MARKETS: About Turn OR About Turn ?

The 1st About Turn means 'Will the markets resume its rally?' or the 2nd About Turn 'Will the markets resume its downturn persisted throughout February, and March? '

In our last article, we clearly wrote about the 5971 level.
It still is the most important level before 5758 and 5480. We believe this level has been held after a corrective last week on the back of global markets profit booking (how do you understand when some thing is a profit booking only or a panic selling or reversal? You can understand it easily See, when the market corrects without any reason it is profit booking and the possibility is highly likely that the present trend will resume again. For example, you saw that on 13 May markets dropped 500 points, there was some export import data, which were not of much significance; export import data have not been of much significance. Neither was there a global markets sell of of such event. Apart from that the Nifty steadied and closed just above the 5971 level which was a clear clear indication of a complete recovery in next or next to next day. So, the point is that when without any substantial reason markets fall in a visible uptrend or rise in a visible downtrend then it is just a profit booking correction and not a reversal)

Markets are looking like playing sea-saw to hold or cross 5971 level in next week and even if a downtrend is there on Monday and Tuesday you can not tell with conviction that it will go further down or will be below 6000 by the time the week ends. So, try to play cautiously next week. Remain long and short both.
Many stocks have again reached their March low levels. Many of them took support and bounced due to formation of mid term levels double bottom. If stocks decline below that then we will see 10-30% decline in next and pursuing week itself in many stocks like Tata Chem, Tech Mahindra, Bank India, and so on. There are many of them, while many stocks have broken their levels and are destined 100% to fall lower in if not next week then later irrespective of market making new high of not. And this happens nornally when market is rising slowly i.e. for example imagine Nifty rising 25 points daily about average and thus crossing 6350+ in 1 month. This type of move lets the bears hammer weak stocks without being affected with market's uprise.
The trader should position himself on both sides by buying strong and selling weak and then increase sizing which ever the market is going for a two day game. However, the bulls still seem to have control over the market, as you saw how on 13 may also bears' attempt to bring markets down went in vein as well as the bulls were successful to pull the Nifty up above 5971 and close 5982 level on last Friday. You can see the struggle in the form of the long 'shadow' on Friday candle.

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Technical analysis and stock movements as well recommendations are subject to changes in market condition and news flow of company and the economy. So please remain updated with us. Or contact us directly in case of any query on info@meghainvestments.com or 09377008708

NIFTY INDEX AS ON 11 AM 23 MAY 2013

Nifty decined from above 6200 due to a tell-a-tell bearish engulfing type of pattern.WE EARLY ALSO SAID MKT VERY BULLISH WHEN IT CLOSE ABOVE 5971. After it rallied above 6200.  Now watch out for 5971 level again if it breaks below that than market can drift down upto 5770 level support.
It looks like if market is going to give correction then it will be led by international market correction.
But go short only if nifty remains on the given level on weekly basis as market has huge appetite for volatility nowadays.
Don't miss opportunities of short selling in many stocks which can give 5-15% return. At the same time hedge position by remaining long in benchmark indices by trading in call and put options and index futures. IT sector is looking again like it will play its role of defensive. Infy, TCS, and TechM looking strong in the short run.
If market sustains the level, then we may see new high above 6360 in June itself. So, remain in market and remain alert.
Traders must not miss volatility. Yes, they should also beware of high volatility. Don't try to play 'catch up' with market or 'chase' market momentum.
Stay updated with us !

Contact us OR Become member to get accurate TGT, SL level and HOLDING DURATION.

Technical analysis and stock movements as well recommendations are subject to changes in market condition and news flow of company and the economy. So please remain updated with us. Or contact us directly in case of any query on info@meghainvestments.com or 09377008708

WHAT TO DO IN IRB INFRA?

NIFTY SPOT CHART AS ON 14 MAY 2013

NIFTY SPOT CHART AS ON 14 MAY 2013
Please enlarge to view.

ALL TIME TOP GOLDEN RULES FOR TRADING:

ALL TIME TOP GOLDEN RULES FOR TRADING:

1.     Always trade with an actual stoploss.

2.     Trade with adequate capital. Otherwise you can easily lose out early.

3.     Make a trading system of signals which determine your entry and exit. Don’t do it on your hunch or guesswork of market and stock moves. Test your trading system/rules until it proves itself wrong.

4.     Never trade on loan money.

5.     Never risk more than 5% of your trading margin on one single trade.

6.     Forget the result of your last trade; be it profit or loss. Every new trade is new game.

7.     Always keep your risk reward ratio above 1.5 or 2 or more.

8.     Never ever average your losing trades.

9.     Let your profitable trades run.

10. Stop trading/take break after consistent series of losses or profits.

11. Be completely clear why you are trading. Don’t trade for only money. Trading is a journey and not a destination. Trading is not a job, it is a business. Expect not to get paid for days, weeks, months and even for a full year as in business. Trade because you love it. Never trade for fun, excitement or kill the boredom.

12.If you are completely new, start with paper trading, but don’t remain in paper trading. If you are relatively old then start with smaller positions and increase your volume as you go ahead with development of your trading system and right trading mental attitude.

13.Remain emotionally detached and completely rational.

How To Develop A Trading System?

How To Develop A Trading System

           

How to develop a trading system and what are the key “ingredients” in a trading system.  The word ingredients is interesting because I think that trading plans or systems should mimic the way we might bake a cake – meaning, it’s important that there are very specific steps involved in taking a trade  setup, and that you need to know exactly what to do when you’re right or wrong.

 

Here are 5 key phases of development of a trading system:

1.    Logic of the trading system

a.    Use If / Then conditional statements that turn into conditional thought process

b.    Make some of the components dynamic

c.    Price is purest form of analysis. How did the market respond the last time this happened

2.    Syntax – Setup takes place before the trading signal.

a.    What conditions are present prior to entry?

b.    What causes entry?

c.    Stop placement (know where your analysis is wrong)

d.    Profit target (reasonable expectation about where the market will go when you are right)

3.    Testing

a.    Test for 30-50 trades (minimum) historically in one or multiple markets.

b.    How did it perform when you followed the exact rules?

c.    What was the max draw-down?