Tag Archives: Free Tips

Nifty & Bank Nifty Trading Strategy as on 15 May’13

Nifty as on 14 May’13– 5995.40 (+14.95)         Bank Nifty as on 13 May’13 – 12583.60 (+14.75)

Market always tests your patience and if you lose it than for sure you are going to lose you hard earned money also. Even after Monday’s sharp fall I clearly told that we need one more confirmatory close, and market has not given. Does that mean, still there is possibility of upside? Answer is unclear but, if Bears were strong enough than we would have seen continuation of weakness today. Let’s see, what happens today.

Nifty Trading Strategy

If Nifty, moves and sustain below 5975 than probably we might see continuation of downtrend, but on holding above 5975 prices may continue to consolidate between 5975 and 6115.

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Free Tips are like Free Vada Pavs

Free tips are like free vada pavsIn Maharashtra Vada Pavs are quite famous and highly consumed by all the people. There are many reasons why Vada Pav is famous- because it is very tasty easily prepared and available and most important is, it is affordable to pockets of every class.

Mostly at the time of Ganesh Visarjan or for that matter any public gathering, Vada Pav is distributed free to gathered crowd. Sometimes it is distributed to advertise some product, or some political party come in picture and advertise themselves. Point I am trying to make is even a small vada pav is distributed free of cost with some purpose, although which is not evident on its face, but it has some effect on mind of public who consumes it. There is nothing Free, you pay for everything, as I said not on face of it.

You must be thinking, why I am talking all this which is irrelevant with my subject. There is some relevance which I want to make here. Tell me frankly when you are eating free stuff, what is your expectation level from that eatery, and what is your expectation level when you enter in to any plush hotel. Obviously, your expectation will be high compare to free stuff.

Point I am trying to make is Free Tips distributed by some sites are like vada pavs, you cannot argue on quality of the stuff, because they are distributing free, if you want to take it you take it, otherwise please don’t come.

Similarly, some so called technical analysis site or blogs are distributing you free stuffs, and attracting you towards their paid services, and I know many people who get trapped by their free vada pavs and enter their hotel and gets nothing but another vada pav, because they cannot produce anything else than vada pav.

I tell you, to give any tip, for that matter even on Nifty I have to work hard for hours and see the price levels, after that deriving strategy based on my expectations, with ideal risk reward ratio and importantly with confidence, is one of the biggest challenge for any technical analyst. And analyst has to do this practice day in day out; now tell me if you are putting so much effort on particular trade than should it be distributed free, there is no time value of money involved in the process??  Even in my site, I only give broad outlook on Nifty, as I am passionate about it, but you will never see I am giving free tips with precise levels, because it requires more time to study, and I am already committed.

Friend, please come out of this phobia that few sites are giving free tips, and I will make money out of it. To test you sites performance, I only suggest you take some article details and just Google it, you will come to know who is the original author of the article. It is really sadden that people are utilizing old books on their name, without giving any credit to the original author.

If you really want to make money out of this market than there is only two ways- one is, either you take service from some professional or secondly you learn by yourself. I always insist to learn by yourself, because you don’t have to depend on others for giving you tips and trading. Yes, process is bit lengthy and road is not smooth, but your goal is to earn and in this commercial world nobody will come at your home to feed you, if you are not going to work.

Sorry Bloggers, but I hate malpractices, be genuine to yourself at least.

Technical Analysis on USD/INR- 54.75

As you can see in attached USD/INR chart, prices are facing resistance near INR 55 level since from last few sessions.  This resistance comes from Golden Fibonacci ratio 61.8% of last move from all time high of INR 57.25 made on 22 July, 12 to low of INR 51.50 which was made on 5th Oct, 12. On the downside prices will witness immediate support from its 200 Day Simple Moving Average, which comes at INR 54.30.

USD/INR - 54.75

  USD/INR – 54.75

Prices moving gradually lower, so the momentum is also fading, it suggests some shorting opportunity.  At CMP INR 54.75 traders can take short position keeping stop loss above INR 55.10 with an initial target of INR 54.35

(Please read Disclaimer)

ZINC – Still sometime to go short??

As most of the commodities are relaxing after last one and half months rally.  Similarly Zinc 1 month MCX contract is moving flat from last few days.  As on 28 Dec, 2012 Zinc closed at 111.35.  Last few days back it broke from its rising trendline, but as such we have not seen any follow through action barring few choppy sessions, but in last session prices has engulfed last fourteen trading sessions price movement and closed in red, at first instance which indicates that Bears are active now.  Momentum is fading to support the basis.  Based on above observations, I sense that if we see follow through action on Monday, than Zinc has potential to go down further.

ZINC - 111.35

                                                          ZINC – 111.35

I am little skeptical only because of Christmas & New year holiday in US.  Traders can take short position keeping trading stop loss of 113.40, with an initial target o 108.

 

ALUMINIUM – 111.60

As on 28th Dec, 2012 Aluminum 1 Month MCX contract closed at 111.60.  Here I see a minor selling opportunity for risk takers & aggressive traders, risk-averse can excuse at this point in time.  I am saying because I am little late in tapping the opportunity.

Technically, prices has broken out from one and half month rising trendline, and momentum is deteriorating.  MACD is already trading with bearish convergence and RSI is tilted downwards, indicating weakness in prices.

ALUMINIUM

Traders can short on rise or at CMP keeping stop loss of 113.40, if prices breaks below level of 111.10 than prices can move towards 109.50 and lower, and if not than prices can reverse the trend and continue to move higher.  As of now, I see selling opportunity with keeping strict stop loss.

M&M – Selling Opportunity???

Currently Mah&Mah is trading near 930.

Technically, it has broken its rising trendline, and momentum is waning.  M&M witnessed sharp rally from 620 odd levels to recent 975; in last 4 odd months trendline is respected and prices witnessed bounce thereon, this time trendline is broken and it seems that prices will fall further.

Mah&Mah

Mah&Mah

I agree that long term investor will not agree with me, to go short on M&M because on broader level picture is still rosy, and I will totally agree with them.  What I see is trading opportunity to go short on M&M at current levels, keeping stop loss of 955, with 1st target would be around 890 levels.

Today Nifty gave Dark Cloud Cover, indicating weakness in Nifty.

Grasim – Sell on Rise.

Grasim Inds at CMP- 3171 looks like a selling opportunity to me.  In below attached chart, it is depicted that prices is already broken support of 23.6% Fibonacci Retracement of last up move from low of 2210 to 3505.  Also prices has formed double bottom near ~3150 levels, once this level is broken prices will move to test next Fibonacci support at ~3000 levels.  Momentum oscillator RSI (14) is also showing initial signs of waning out.  Risk involved in taking short is, stock can move higher by taking support near 3150 (forming triple bottom).

Grasim Inds

                                                            Grasim Inds

Risk-averse traders can initiate short below 3150 levels, with strict stop of 3250.   Risk takers can use rise up to 3250 as a selling opportunity with stop loss above 3400, targeting 3000 and lower levels.

(Please read disclaimer attached below)