Thursday, April 25, 2013

Stock Markets Rally - But How Much Did We Profit?

Today has been the day of reckoning. For today was expiry day for stock futures and if you would recall we entered into trade on 15 Apr 2013 on my recommendations given for 12 stocks on 14 Apr 2013 in a blog-post which you can access here

Now let us evaluate how much each of the 12 stock recommendations were worth. Out of the 12 stocks, only 11 could be traded as Ibrealest buy price was not achieved. Since the recommendations were for stock futures of April contract all the trades got closed, today being expiry day. Read on below to find out the score of each buy recommendation of 11 stock futures :- 

1. UNITECH (Lot size - 10000)   
Bought at 24.25
Sold at 30 
Profit = 5.75 (30-24.25) x 10000 = Rs 57,500/-

2. JPASSOCIAT (Lot size - 4000)   
Bought at 70
Sold at 80 
Profit = 10 (80-70) x 4000 = Rs 40,000/-

3. AMBUJACEM (Lot size - 2000)   
Bought at 173
Sold at 190 
Profit = 17 (190-173) x 2000 = Rs 34,000/-

4. LT (Lot size - 250)   
Bought at 1355
Sold at 1490
Profit = 135 (1490-1355) x 250 = Rs 33,750/-

5. JSWENERGY (Lot size - 4000)   
Bought at 56.5
Sold at 64 
Profit = 7.5 (64-56.5) x 4000 = Rs 30,000/-

6. ACC (Lot size - 250)   
Bought at 1140
Sold at 1260
Profit = 120 (1260-1140) x 250 = Rs 30,000/-

7. JPPOWER (Lot size - 8000)   
Bought at 24.5
Sold at 27.5
Profit = 3 (27.5-24.5) x 8000 = Rs 24,000/-

8. RELINFRA (Lot size - 500)   
Bought at 340
Sold at 380 
Profit = 40 (380-340) x 500 = Rs 20,000/-
9. BHEL(Lot size - 1000)   
Bought at 178
Sold at 192
Profit = 14 (192-178) x 1000 = Rs 14,000/-

10. VOLTAS (Lot size - 2000)   
Bought at 79
Sold at 85
Profit = 6 (85-79) x 2000 = Rs 12,000/-

11. DLF (Lot size - 1000)   
Bought at 243
Sold at 253
Profit = 10 (253-243) x 1000 = Rs 10,000/-

Keep a lookout for the next set of recommendations for the May series in this blog.

Wednesday, April 24, 2013

Feeds Through Feedburner Not timely - Will Be Terminated Henceforth

I have realized that feeds that you get through Feedburner in your mailbox are delivered to you quite late. This is creating problems for some of you to access market information from this blog in a timely fashion. Not getting timely actionable information is detrimental to entering market in a profitable manner as per my recommendations.

Hence from now onwards, I am going to switch off feeds from Feedburner to your mailbox, so that you stop getting delayed market information for trading. Those who want to take action in stock market as per tips provided in this blog, will now have to directly access the blog. For ease in accessing the blog you may download for Free my toolbar which is provided on the right hand side of the blog. This is Alexa toolbar (powered by Google) and is quite handy. You may also download my toolbar from the link provided below:-

So go right ahead and download my toolbar in order to directly access this blog. I will keep giving you timely recommendations with precise entry and exit points of selected stocks so that you can make smart profits on a weekly basis. The present recommendations of 12 stocks, which I had given on 14 Apr 2013 in this blog-post, will  expire tomorrow i.e. on 25 Apr 2013. I will give you an update/result sheet of my present recommendations after market hours tomorrow.

I firmly believe that the present market conditions are going to provide immense profit making opportunities for short term traders. Hence you will be greatly benefited to enter trade in stock/index futures. Those who have realized the profit making potential of my recommendations can look forward to many more of my recommendations in this blog to make money out of stock market.

Sunday, April 21, 2013

Investors - Time To Consider Shifting To Buying Real Estate

Investors in Stock Market will have a tough time with fierce volatility expected in 2013-2014. What we are witnessing today is not correction, but beginning of a deep correction, if not a long term Bear Run. Frankly speaking, a deep correction or a cyclical Bear Run have almost the same devastating effect on investor money. Such market conditions are beneficial only to smart traders and that too in the futures market, because when the market is trending down then the futures trader can go along-with the market and sell  futures position. As the market slides lower, such a trader can make profit by buying (squaring off his position) at lower level. In this manner a trader can make profit when the stock market is correcting/ in the grips of a bear hug.

In second paragraph of my blog-post on 14 Apr 2013, I had emphasized this fact that the present time is not conducive for Investors in stock market. This time in the stock market is only for traders. You can access that post here :

Commodities Market
If it is not stocks, then can you invest in commodities? The answer is 'No'. The commodity prices also have nose dived and they are just precursor to even worst things to emerge in the commodities front. Gold which was considered by investors as safe haven, is no longer so. We can expect 2013-2014 as very bad years for investors in Gold. Single day historical drop in gold prices of more than Rs 1500/- is just telling us that Bear Phase in Gold has started. After a Bull Phase of nearly 12 years, one can easily conclude that the Bear Phase will last at least two years.

Property Market
The only place left in India to invest now is the property market. That too in select places where the growth potential is maximum. With lot of policy easing lined up by the Govt (as Finance Minister is making us believe) to attract foreign capital, property market is set to boom. What will help is softening of commodity prices, which in turn will lower inflation and that will give impetus to RBI Governor to lower rates. On the sidelines, the current account deficit (CAD) in India will improve with price of oil cooling off and gold losing its luster with investors thereby lowering demand and import bill. All said and done, real estate market is ready to take off and that is the place to park your money, if you are an investor.

For investing in real estate, three most important things to be kept in mind are as follows:-
  1. Your property investment  should be in a place with high potential of economic activities.
  2. The location of the property should be such that it has very high connectivity, by Road, Rail and Air.
  3. If you are looking at a property purely from investment angle, then it makes more economic sense to buy a commercial property, since the returns will be mush higher than residential property.
Besides what is given above, in places where you know Metro Rail is going to expand in a couple of years, such locations have an exponential potential of  giving you high returns. Place like the new Commercial Business District(CBD) of Gurgaon towards Manesar is one such sweet spot for investors and lot of builders have started executing their grandiose plans there. After a detailed survey and analysis, I would recommend one such builder and his not to be missed offer of Assured Return of 12% till completion of the project or five years whichever is later.

State of the Art commercial property is Aquarius IT Park at Sector 74 Gurgaon, being developed by Vigneshwara Builders and the only builder in this commercial business district of Gurgaon who has been given the permit to build a rooftop helipad. Those investors who are interested to get the exact details should contact their General Manager (marketing), Mobile No : 09359210404.

Best of Investing!!!

Market Stock Trading Trend

In case you are getting frustrated with trading a market which seems illogically volatile, then you should be reading this. It will give you insights to Market Stock Trading Trends that you can easily identify and make quick profit. But then in doing so you need to be nimble footed, you need to quickly take decision to enter the market with a stock futures trade, and without getting too emotional you should as quickly move out of the way of taking profit off the table. That is easy said than done, until you learn to identify such market stock trading trend. So here I am going to help you identify such trading trends in the ensuing paragraphs. Here we go!

Market Stock Trading Trend

Even when the market is not showing any long term or medium term trend, that is when the market is not trending, you will find smaller trends in the short term. Basically these trends are due to Wave nature of the market movement and can be profited from in near term trading. Let us first understand few basic principles of Market Stock Trading Trends :-
  1. Any market movement will take place in the form of Waves.
  2. These waves move up in five steps in Bull Run, and conversely move down in five steps in Bear Run.
  3. Movement of waves in five steps upwards means that the first step will go up, second step will come down but not below the low of first step, third step will go up higher than the high of first step, fourth step will come down but not lower than the high of first step and fifth step will either go higher than third step high or equal to that high.
  4. This means that for a market trending upwards, there will be three steps taking prices upwards and there will be two steps taking prices lower. Same will be the opposite case for markets trending lower.
  5. The three steps which take the prices upwards will again move in five-step waves, and the two steps taking prices lower will move down with three-step waves.
If we have assimilated this preliminary information about market movement, then we can apply this for short term trading. For identifying Market Stock Trading Trends in the short/near term in a daily stock chart, follow the instructions given below :-
  • See the daily chart of a stock and try and identify whether the short term trend is up or down.
  • If it is up then identify whether the third step of the wave has started or not.
  • Catch the third step of the wave as it begins and buy the stock. Remember the third step of the wave is generally the most profitable with minimum risk. This step will take the prices higher than the high of first step as discussed earlier.
  • As the prices go higher than the high of first step, keep a trailing stop loss and go with the price movement. As the price moves higher, move your trailing stop loss higher, till you are stopped out. This your your exit.
  • Since you are looking for very short term profit, trade with stock futures so that you can get a leveraged profit, which can be substantial. In terms of Return on Investment, your profit should be averaging 25% in 4/5 trading sessions.
Hope you have got some useful insights into Market Stock Trading Trends and can use this information to profit in this market. Always use your stop loss after entering any trade. In later posts I will be giving you tips on Swing Trading Indicators so that you can enhance your prowess in Market Stock Trading Trends.

Wednesday, April 17, 2013

Trading Plan : Stocks Hit Target on Third Day

Those who are trading with my Trading Plan as given on 14 Apr 2013 here would have realized how powerfully some of the recommended stocks have responded in a market that was lackluster today. In fact the market closed absolutely flat with no clear direction. Even then some of stocks which achieved their first target are discussed below :-

1. JSWENERGY. Bought at 56.5 for 1st tgt of 60. Closed at 61.1. Lot size : 4000. Capital Invested : Rs 38500/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 14000/-. Profit percentage : 36.3% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 64, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

2. UNITECH. Bought at 24.5 for 1st tgt of 26.5. Closed at 27.25. Lot size: 10000. Capital Invested : Rs 53500/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 20000/-. Profit percentage: 37.3% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 30, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

3. JPASSOCIAT. Bought at 70 for 1st tgt of 75. Today's High at 75.8. Lot size : 4000. Capital Invested : Rs 56000/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 20000/-. Profit percentage : 35.7% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 81, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

4. AMBUJACEM. Bought at 173 for 1st tgt of 185. Closed at 186.9. Lot size: 2000. Capital Invested : Rs 55400/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 24000/-. Profit percentage: 43.3% in 3 days. In case you have not booked profit at 1st target and are playing for 2nd target of 194, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

In yesterday's trading two stocks had achieved their first targets and in today's trading four stock have achieved their first targets. In other words in three days of trading as per my recommendations, six stocks have achieved their first targets. And one could say that the profits attained are reasonably sufficient. Let us now see how all my recommendations fare till the expiry of April contract, which is on 25 Apr 2013. Best of trading!!!

Tuesday, April 16, 2013

Trading Plan - Sitting On Cusp Of Profit Bonanza

Those who are following this series of my Trading Plan, would recall that day before yesterday i.e. 14 Apr 2013, I had implored my readers to jump into the stock market and buy stock futures ( or even stocks) according to their Trading Plan for some smart and quick profits. Those who didn't have their own Trading Plan could use my Trading Plan as I had given in that blog-post, which you can access here :

Well today has been the second trading day and already couple of the stock futures I had recommended for buying have already achieved their first targets. Let us now analyze those stocks which have hit their first target in two trading sessions:-

1. JPPOWER. Bought at 24.5 for 1st tgt of 26. Closed at 26.25. Lot size : 8000. Capital Invested : Rs 33500/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 14000/-. Profit percentage : 41.8% in 2 days. In case you have not booked profit at 1st target and are playing for 2nd target of 28.5, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

2. LT. Bought at 1355 for 1st tgt of 1435. Day High at 1435. Lot size: 250. Capital Invested : Rs 54200/-(cost of one lot). Profit realized if sold on 1st tgt : Rs 20000/-. Profit percentage: 36.9% in 2 days. In case you have not booked profit at 1st target and are playing for 2nd target of 1490, then do keep trailing stop loss to protect your profits as the stock price moves towards its 2nd target.

Even Ibrealest  has achieved my first target of 59 and closed at 59.15 today, but remember it had  failed to come down to my buy price day before yesterday. So we take it as a great missed opportunity. Rest of my recommendations are at the cusp of reaching their first target and some are also poised to achieve their second target soon. So keep faith and hold on to your positions for some astronomical gains within a week.

One last thing. In case you have any queries then do use the 'Comments' section of this blog-post and I shall be happy to answer to the best of my abilities. You may or may not have entered trade as per my Trading Plan, but by commenting you will ensure that I keep getting motivated to provide you with such recommendations in future also. Happy Trading!!!

Monday, April 15, 2013

Trading Plan - For Those Who Did Execute

In my last blog-post on 14 Apr 2013, I had requested my readers to enter trade today(15 Apr 2013) with some Trading Plan. Entering the market today was important with Stock Futures trade for capturing smart gains. Also in that blog-post I had suggested my own Trading Plans to enter the Futures market. One could enter the cash segment also with those Trading Plans, but they would be rewarded with a smaller profit percentage.You can check out  my last blog-post here

Let us now check how each of my recommendations have fared on the first day of trade. In other words, those who acted on my Trading Plan should be witnessing the following status in their trading accounts :-

Trading Plan # 1
1. Relinfra : Bought at 340. Closed at 356. Lot size 500. Notional Profit= 16x500= Rs 8000/-.against capital investment of Rs 38500/-(Cost of one lot). Hold for 1st target of 380
2. Ibrealest.  No trade since buy price not achieved
3. DLF. Bought at 243. Closed at 242. Lot size 1000. Notional Loss= 1x1000= Rs 1000/-.against capital investment of Rs 48500/-(Cost of one lot). Hold for 1st target of 275
4.Unitech  Bought at 24.25. Closed at 24.65. Lot size 10000. Notional Profit= 0.40x10000= Rs 4000/-. against capital investment of Rs 53500/-(Cost of one lot). Hold for 1st target of 26.5
5. JSWEnergy  Bought at 56.5. Closed at 56.8. Lot size 4000. Notional Profit= 0.30x4000= Rs 1200/-. against capital investment of Rs 38500/-(Cost of one lot). Hold for 1st target of 60
6. JPPower  Bought at 24.5. Closed at 25.25. Lot size 8000. Notional Profit= 0.75x8000= Rs 6000/-. against capital investment of Rs 33500/-(Cost of one lot). Hold for 1st target of 26

My Trading Plan #2 is also in somewhat similar situation in the first day of trading. Let us see how these stock futures fare in the coming trading sessions. Do remember to keep appropriate trailing stop loss once the first target is achieved and you are gunning for the second target. Happy Hunting!!!

Sunday, April 14, 2013

Execute Your Trading Plan Now

Be fearful when others are greedy, and be greedy when others are cautious. So goes the saying, and I think this quote is attributed to Warren Buffett. 
Simmering Crisis in Global Financial Markets, gloom in Earnings Forecast of Indian companies, instability in  Indian political system - you name a negative scenario and it is present right now to scare investors in the Indian markets. No wonder Nifty is looking as if it is going to fall off the precipice. More than Nifty, big names in midcap companies are presently trading at their multi year lows and some are even at their historical lows. Fear is rampant in the markets and you can hear voices all around asking you to be cautious. It's a perfect setting for you to be greedy, because everyone else is cautious. And that is the reason why I am exhorting you today to take out your Trading Plan and go about executing it in the next trading session. In the succeeding paras I will be giving you some Trading Plans which you can execute for quick gains. But if you have your own Trading plan then do execute that with proper stops or whatever your safety mechanism is.

Trading Plan # 1.
You need to realize that I am talking about Trading and not Investing. I believe that Investing climate has still not come in any market. So investors are better advised to watch the play in global markets from the sidelines. So if we are on the same grid regarding trading, then make up your mind to deftly enter and exit a trade. No trade should be held for more than a fortnight. And yes, the only efficient way to trade is to enter the stock or index futures trade. Of course you may also enter trade in the cash segment which will be less risky, but it will be less paying.

Now for the Trading Plan proper. I am recommending that you should enter the Infrastructure space including the Power sector to pick some fundamentally strong companies to execute  futures trade. Some of the stock futures(Apr) you could consider trading for handsome gain, before expiry, are listed below:-

(a)  RELINFRA: Buy between 336/340, 1st tgt 380 & 2nd tgt 422. Stop Loss- 326. Lot size-500
(b)  IBREALEST: Buy between 52/53, 1st tgt 59 & 2nd tgt 65. Stop Loss- 50.5. Lot size-4000
(c)  DLF: Buy between 243/247, 1st tgt 275 & 2nd tgt 285. Stop Loss- 236. Lot size-1000
(d)  UNITECH: Buy between 23.5/24.5, 1st tgt 26.5 & 2nd tgt 30. Stop Loss- 22.5. Lot size-10000
(e)  JSWENERGY: Buy between 56/57, 1st tgt 60 & 2nd tgt 64. Stop Loss- 54. Lot size-4000
(f)  JPPOWER: Buy between 24.25/24.75, 1st tgt 26 & 2nd tgt 28.5. Stop Loss- 23.75. Lot size-8000

Trading Plan # 2.
The other basket you could consider trading is Cement and Capital Goods. Both the sectors are showing signs of good up-move from their multi-year lows. Reason could be anything from impending Fitch and other rating agencies' India rating upgrade to a sudden spurt in economic activities in the infrastructure sector owing to some firm policy decisions. Given below are some of the stock futures(Apr) you can pick up for smart gains before expiry:-

(a)  JPASSOCIAT: Buy between 68.15/70.15, 1st tgt 75 & 2nd tgt 81. Stop Loss- 66.5. Lot size-4000
(b)  AMBUJACEM: Buy between 173/175, 1st tgt 185 & 2nd tgt 194. Stop Loss- 170. Lot size-2000
(c)  ACC: Buy between 1140/1150, 1st tgt 1225 & 2nd tgt 1270. Stop Loss- 1130. Lot size-250
(d)  BHEL: Buy between 176/180, 1st tgt 195 & 2nd tgt 205. Stop Loss- 174. Lot size-1000
(e)  LT: Buy between 1355/1370, 1st tgt 1435 & 2nd tgt 1490. Stop Loss- 1340. Lot size-250
(f)  VOLTAS: Buy between 77/79, 1st tgt 85 & 2nd tgt 90. Stop Loss- 75. Lot size-2000

So now go ahead and execute your Trading Plan tomorrow. In case you have any queries, you can ask me through the comments section in this blogpost. I shall appreciate if you could give your trading feedback after having executed your trade. Any input from your side will be valuable in providing me with motivation to give you more Trading Plans in future.