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. 

2 comments:

  1. can you please suggest a Trading plan for buying selling shares and not futures

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  2. As I mentioned at the beginning of this blog-post, you can make use of the same Trading Plan for buying and selling shares in the cash segment. However since there will be no leverage in cash segment, your profit percentage will be low. At the same time your risk will also be low.

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