Whenever ICICI Direct gives a buy call on a stock that I have shorted on futures, I get very nervous. Same happened again today. RELCAPITAL got a buy with targets above 278! Stock was trading at 369. So, I kept a stop loss at 371 which anyways got triggered. The daily chart showed a “W” pattern to begin the day with. This notified me that some big move is coming. However for a long period of time it stayed lower at 367 levels. So, I thought, it is worth to play the shorts again. I kept a SELL order to be only triggered if futures breach 367.5. Note that at stock levels of 367, the may futures were trading at around 369. My analysis worked and the stock started tanking pretty soon to finish the day at -2.5% at 357.80. The may futures ended at 361.20. I will now chase the profit on this with a 4 point gap trailing stop.
As I was worrying yesterday, I am now running on short side when market is zooming upward. So, I looked for good stocks trending upwards. Unfortunately none of the good ones like wockhardt, Uttam galva, Uttam Sugar were listed for F&O. Finally, I saw a good pattern building up for Bhushan Steel. As per our guidelines, stock was on green with volume higher than 5d, 10d and 1m average. Also, it made a strong upmove of more than 2% intraday. All the charts – 1d, 5d, 1m were showing steady upmove and 1d chart showed a breakout. So, I bought this at market price of 417.40. It ended the day with great move to 421.25. Hopefully this should go even further upwards tomorrow.
So, here is the summary:
Bhushan Steel: Buy=417.40. Holding.
Reliance Capital: Intraday buy and sell loss of 3 points + commission = Rs. 2000/-. Now, I am still holding 1 short position.
The intraday loss of 2k is worth it since it saved me from what could have been a rally to 378 as predicted by the brokerage house.
The OI for RELCAPITAL 360 PE added 37k shares and looks healthy for a down fall.
Here are the Reliance capital trades:
Bhushan Steel charts:
Charts of Reliance Capital:
No comments:
Post a Comment