NTPC Stake Sale - Trading action

For entering trade today in stocks futures I had given recommendations on 19th Oct, both for day trading and swing trading. For easy reference please check these two links -

http://archana-archdeb.blogspot.com/2009/10/swing-trade-for-19th-october.html and http://archana-archdeb.blogspot.com/2009/10/day-trading-recommendations-for-19-oct.html

However you may also add NTPC to the list because of the news flow yesterday.

NTPC has been accepted by Indian Govt for disinvestment. The cabinet has agreed for 5% stake sale of this state owned thermal power generation company, the largest in India valued at around Rs 1.7 trillion. Presently Govt owns 89.5% shares in the company, rest being held by the public. In 2008-09 the company had a profit of about Rs 78,270 million to a revenue of about Rs 4,21,820 million. The sale of shares of NTPC could net Rs 86,000 million to the Govt. This sure is sentiment enhancing news and one that could propel the stock northwards in today's trade. So my recommendation would read as follows :-

NTPC OCT Fut. Buy NTPC Oct Fut at 213/214 for day trading. You should target 220 as the initial sell point. However break above 220 should see the scrip sailing to 230 in 2/3 trading sessions.

Day Trading Recommendations for 20 Oct 2009

In the last post I had given recommendations for entry into swing trading when Indian stock markets open today ie 20 Oct 2009. But if you cannot stomach the waiting game while holding position in Futures then the best answer for you is to day trade. So the swing trading recommendations given in the last post ( http://archana-archdeb.blogspot.com/2009/10/swing-trade-for-19th-october.html) can be utilized as day trading opportunities with small profit targets of 3 to 5%.

Apart from that, given below are some more scrips in which you may like to day trade today:-

LITL. Buy LITL Oct Fut at 550/552 for a target of 580/585. You may have to wait for one more trading session for this target.

DLF. Buy DLF Oct Fut at 448 and cover the position at 500. This target may take one more trading session to materialize.

Nagarconst. Buy Nagarconst Oct Fut at 164/166 and cover your position at 174/176. In case you are unable to square off position today then hold for just one more trading session as BTST position.

Swing Trade for 20th October

Today I am going to recommend another bunch of scrips for swing trading This will be our second attempt to trade some scrips who qualify for swing trading. The first attempt gave nearly 40% return on an investment of Rs 1.5 lakhs in 04 days. Check this out through the link here - http://archana-archdeb.blogspot.com/2009/10/culmination-of-swing-trade.html

Today's recommendations :-

Tatapower. Buy Tatapower Oct Fut between 1370/1390 for a target of 1490/1510 in 4/5 trading sessions.

Centurytex. Buy Centurytex Oct Fut at 526/528 for a target of 560/564 in 4/5 trading sessions. In fact you may see the target being met in today's trade itself.

Day Trading Tips : Mahurat Trading

Be prepared for some surprises this Diwali Mahurat Trading. You will need to be careful of sharp volatility. I will be recommending October Futures of few scrips for trading today. But in case you find that your buy position remains open by the end of Mahurat Trading, then you can keep the position for next trading session. What I mean is that you need not panic with your buy positions taken today at my recommended price, in case you cannot exit in profit. Hold them as BTST positions. Here are your trading tips for today:-

Nagarconst. You can buy Nagarconst Oct Fut at 170.5 for taking quick profit of Rs 3/4. The next entry buy point will be 165/166 which you can keep holding for a gain of Rs 10/12.

HDIL. Buy HDIL Oct Fut at 378/382.5 for a target of 390. There is a strong possibility that you may not get the buy price in trade today, but then it is better to be safe than sorry especially while dealing with Futures.

LITL. Buy LITL Oct Fut at 526/530 for an upside profit of Rs 15/20. While going down you can again re-enter at 502/506 and keep it for 2/3 days. Of course you may decide to quit if such a position gives you profit of Rs 30/- plus.

ICSA. You can buy ISCA Oct Fut at 203/207 for a gain of Rs 8/10/-.

Century Textiles. Buy Centurytex Oct Fut at 511/514 for profit of Rs 15/20.

Relcapital. You can buy Relcapital Oct Fut between 907/915 for a profit of Rs 20/25.

Punjlloyd. Buy Punjloyd Oct Fut at 280/282 for profit of Rs 7/10.

Culmination of Swing Trade

Today has been the last trading session for swing trade recommended in my blog post dated 12 Oct 2009. What a swing it has been!!! For quick reference please click the link given below.

http://archana-archdeb.blogspot.com/2009/10/swing-trade-for-12th-october.html

If you have been trading the swing as per my recommendations, then today you must be laughing all the way to your bank. Lets evaluate the performance of the swing trade recommended in the link above. I had recommended buying October Futures of three scrips, viz HDIL, Nagarconst and Asian Paint. Out of these three, Asian Paint could not be bought since the recommended buying price was not met in trade. For the other two scrips lets calculate your total profit from this swing trading strategy as of today, since I had advised you to keep the trade for 3/4 trading sessions.

HDIL. Recommended buy price of HDIL Oct Fut was between 352 and 362. Supposing on 12th Oct you bought your position in HDIL at 357.5 (day low was 357.2) then you would have sold today at 398.5 (day high was 398.95). Lot size is 774.

Profit per share = 398.5-357.5 = Rs 41/-

Total profit = 41 x 774 = Rs 31734/- less brokerage.

Nagarconst. Recommended buy price of Nagarconst Oct Fut was between 164 to 166. Presuming you bought one lot of Nagarconst at 165.5 (day low was165.1) then you would have sold on 14th Oct at recommended price of 179.5, which incidentally was also the day high. Lot size is 2000.

Profit per share = 179.5 - 165.5 = Rs 14/-

Total profit = 14 x 2000 = Rs 28000/- less brokerage.

Grand Total Net Profit = 31734 + 28000 = Rs 59734/- less brokerage = Rs 59000/-

So now you would agree that the swing trade did give you handsome return. Your total capital investment was around Rs 1.5 lakhs and the return on your investment (ROI) was 39.3% in just four days. If you have liked my swing trading strategy then do give your comments and follow my blog for more of such trading insights and game plans. Hope my recommendations continue to enrich you consistently by way of startling wealth creation.

I have also been giving day trading recommendations every day before the start of the market. Please check out today's recommendations or click on the links given below.

http://archana-archdeb.blogspot.com/2009/10/day-trading-recommendations-for-16-oct.html

http://archana-archdeb.blogspot.com/2009/10/taking-stock-day-trading-tips-for-16.html

Happy Trading! Happy Diwali!