ITC triangle

ITC has consolidated in a triangle the break above the triangle can
give target of 205 while break below the triangle can give 135.
Build position only after breakout indication.

Support Levels

With Nifty taking support and making double bottom at 2500 level (As indicated
Earlier) many other stocks are showing good support lines.

State Bank of india has support around 975 level.

L&T has support at @ 670 Level
Icici bank has support nr 300 level

Nifty making double bottom @2500

Good support have come again at the crutial level of 2500.

Its a double bottom in making. . . . (While the call is very early.)

If Nifty do not close bellow 2500 level one can take bullish postion with

SL of 2500.

Gujarat Gas First bullish sign. .

There is a good inverted head and shoulder formation in the Gujarat Gas counter
also it has broken the neck with good volume as can be seen in the attached

One can enter with Stop Loss of 200 and target of 240.

Hope every one will maintain stop loss after reading my earlier posts on stop loss.

Nifty 3160 level critical for Reversal

Check the following chart. As we can see there is probable Inverted head and shoulder forming in the Nifty bottom. In case Nifty ends up above 3160 level then we can see the target of 3775.
"One should buy only if Nifty closes above 3160"

x=height of the head and shoulder ie 3148-2524=624,
Targert = 3148+624= 3772

The sure way to loss : Mutual Fund . . !

When every expert on this planet would saythat small investors are
better off when investing through Mutual Fund.
Can any one point out one mutual fund that
have not made enormous loss (more than 45%) in this falling
market. (Blame it on the market that everyone do).
This is not because we have fools managing thefund. BUT
This is because of the government's policy which ristrict mutual
funds to sell off their holding at will when the fund manager finds that
the market is going to crash.
While such restrictions are milder when itcomes to FII.
So this is a lose-lose situation when it comes to small inverstor who
thinks thatmutual funds are better and their money is safe in hands of
fund manager, While goodfund manager who picks good stock have
no right to sell and save "Small Investor" in such a crises.
What's your opinion. . . ?

StopLoss order on ICICIDIRECT

In reply to the comment I am describing here how to put the
Stop Loss order on icicidirect.

Refer the screenshot and there is the "Stop Loss trigger price" as highlighted
bellow. This is the price when achieved a market order will be sent
and your position will be cleared booking the loss.

I have filled in this order as per the older discussion.

Update : I have added the sell stoploss order for Sharekhan screen too.

Stop Loss ka Funda . .

I was surprised when I found out that my good friend
who is in Market since 98 is not clear about Stop Loss. I also got the message
from this blog reader that he had lost good amount in this down turn
While I am "all in Cash" this time also since my Stop loss was 3800 on nifty:
Hence I am reproducing what I sent to my friend, on what is stop loss:
Stop Loss is the "Funda"/"Policy" you need to implement
and not just order on
This is how it works:
StopLoss is the "Predecided" value at which the loss will be booked
if the price of share goes against your trade before creating the position.
ie If I buy Reliance at 1800 and keep stop loss at 1700 that means
I "Pre-Decide" that if the share price falls bellow 1700 it is not
going to rise hence sell reliance and book loss without averaging.
Now you can put such order in icicidirect but stoploss will continue
only for that day. While what this "Funda" means that you need to track
the prices and sell on the day Reliance price goes and closes bellow 1700.
While I use something called trailing stoploss. Here I keep moving
my stoploss upward (downward revision not allowed). So now assume
that Reliance share moved from 1800 to 1900 I move my StopLoss to 1800
and then if it moves to 2500 I move my StopLoss to 2400. Assume that
price now falls to 2380. I sell Reliance at 2380 <>

I have also kept some usefull links on the right side of this blog but people
tend to look at this blog only for "tips". I suggest all to read following

Very few might have "LEARNED THE TRICK" alas !

All stop loss hits All in Cash

All stop loss hits All in Cash you should be if you had stop losses.

So looking for clues I turn to Fibbonacci

In Nifty chart there are 2 scenario emerging.
One is the bull rally that ended on 8 Jan 2008 (6288 High) started
on 25 april 2003 when Nifty was 924 (I feel this is more convincing to ME)
Second thought is that rally started on 17 May 2004 when Nifty was 1338.

Now with 924 as start of rally we get following support levels can be arrived at
Delta = 6288 - 924 = 5364
High - 0.618 Delta = 6288 - (0.618 x 5364) = 2973 (Bot most level)
High - 0.5 Delta = 6288 - (0.5 x 5364) = 3606 (Mid level)
High - 0.382 Delta = 6288 - (0.328 x 5364) = 4239 (Top level)

While considering 1388 as start of rally we get
3260 (Bot most level)
3838 (Mid level)
4416 (Top level)

Paradox, up Up and Away symptom . . !

I got surprised at the sight of this, There are more advances than declines and
index has fallen on friday. . ! While 3800 is intact on Nifty.
What does this mean, Monday market is going to be up and many be the indication
of up up and away symptom.

Nifty 3800 Bottom

As shown earlier nifty was expected to go up to 3800.
This level is very important and close below 3800 levels
would be very bearish signal.

Nifty - Up or Down . . ?

The confusing Friday.
Today's tick on the Candle stick chart look as if we have got the higher bottom on Nifty.

But on the line chart the scene is not the same. Here it is clear that we have a lower bottom on Nifty.
3800 on Nifty can be expected next week

NTPC resistance Intact

Check the chart and earlier post on the same counter.
It is very evident that the resistance line is getting
stronger and stronger.
While things are turning bullish once this counter crosses the 190~195 levels
and closes above this resistance line bullish position can be taken.

RPL Resistance line

RPL ha come to the resistance level and it can become bullish only
above 175 level as seen from this chart.

Channel in HPCL

A good uptrending channel is visible in HPCL
one can buy with SL of around 215.

BHEL 1575 SL (followup)

Check the chart here there is good indication of resistance becoming support. New stop loss of 1575 can be established.

This is follow up on the earlier blog on the infrastructure

Bullish on infrasturcutre

BHEL & L&T have shown good breakout of the roof of
the down trend,

Both have good gains in long run due to N-Deal.

NTPC Hits the roof

Nr 200 level NTPC will face good resistance
Enter only once it breaks 200.

Punj-Llyod 350 target

Things have changed after Dr Singh's gov is saved.
Many stocks are showing good bullish signals and Infrastructure
companies can make good business.

Punj Lloyd's chart is showing breakout and seems to hit 350 in hurry.

230 can be your first SL while 190 can be stop loss for long term holding

Reliance & L&T supported @ long term trendline

Reliance @ 2000 level while L&T @ 2100 level have taken support
on the long term trendline.

One can go long on these considering the stop loss as close below the
trendlines as shown here

L&T resistant to support

L&T is in the consolidation phase. Resistance has become support this means
there is bullish indication.
3300 could be the short term target.
2750 and 2600 can be considered for stop loss.

ACC SUPPORT 730, 710

As a follow up the stop loss has already hit people must exit this stock.

One of my friend asked on my opinion on the script ACC. Here the
support of 710 ~ 730 level will be crutial. While strict stoploss have
to be maintained at 700 Level as bellow 700 the stock may see
lot of selling.

Bottom is close - The GURU

As per the Vivek Patil's observation on the icicidirect technical report
(He is really good) Bottom is expected in this May or June and
then the up phase would continue How long ? is the question.

L&T Breakout : Probable

Check the chart after consolidation L&T has shown a good bullish sign.

Break with a convincing volume can give the target of 4700~4800.
PS : My exposure to L&T is unavoidable as I have ESOPs given by L&T.