Trades Entered - RBI Rate Cut Eyed Eagerly

Bull charge is on!

In my last post, I had given 20 scrips to enter trade today.

However there are some trades which we could not enter. Buy price given in 10 scrips were not met in trade today.We will discuss about these scrips later. We need to review our entry in these scrips.

 These scrips are JINDASTEL, INDIACEM, TATAPOWER, CANBK, RPOWER, UNIONBANK, ANDHRABANK, BANKINDIA, ORIENTBANK, SYNDIBANK

Today we could enter into ten trades at my given buy price. These are mentioned below :-

HEXAWARE :  Bought at 268, Closed at 254.2
BANKBARODA:  Bought at 150, Closed at 151.75
KTKBANK   :  Bought at 104, Closed at 104.35
UCOBANK  :  Bought at 40, Closed at 40.25
LT&FH  :  Bought at 65, Closed at 65.15

ALBK    :  Bought at 57, Closed at 56.9

IDBI      :  Bought at 71, Closed at 71

PNB       : Bought at 87, Closed at 87.25

SBI    :  Bought at 195, Closed at 195.8

IOB       : Bought at 30, Closed at 29.9

In all these trades, only Hexaware has behaved negatively and hence needs to be watched carefully. If you have entered into Hexaware trade at 268, then you should exit as and when Hexaware touches 270.

Indian Stocks in Radar - Buy Buy Buy!

Those who followed my advice would be quietly sipping  a refreshing cup in complete peace. After all trading just one lot of SBI for a fortnight has given them Rs 30000/- in profit from an investment of Rs 75000/-

Now I will give you recommendations to a basket of scrips which will give handsome profit in coming days. All these scrips should be traded in April Futures contract.

Hexaware : CMP 270.1, Buy- 268, tgt - 278.

Jindalstel : CMP 63.95, Buy- 62.5, tgt - 72.

Indiacem : CMP 89.15, Buy - 87, tgt - 95

Tatapower CMP 65.5, Buy 64, tgt-70

Rpower CMP 50.5, Buy 50, tgt - 54

L&TFH CMP 66.05, Buy 65, tgt - 70

IOB CMP 30.6, Buy 30, tgt - 36

Canbk CMP 199.7, Buy 194, tgt - 220

PNB CMP 88.25, Buy 87, tgt - 100

SBI CMP 197, Buy 195, tgt - 220



RBI policy review on 05 Apr 2016 will give tremendous boost to Indian markets. If RBI announces rate cut of 50 basis points, then all the stocks discussed so far will get turbo-charged. There will be mad rush to join the herd.

But maximum focus will be in the following scrips, which to will give very high returns :-

Andhrabank CMP 55.85, Buy 53, tgt - 65                  

Bankindia  CMP 100.9, Buy 98, tgt - 120

Ucobank CMP 40.95, Buy 40, tgt - 45

Ktkbank CMP 105.3, Buy 104, tgt - 120

Albk CMP 58.05, Buy 57, tgt - 67

Bankbaroda CMP 153.3, Buy 150, tgt - 170

Orientbank CMP 96.8, Buy 94, tgt - 110

Syndibank CMP 71.5, Buy 67, tgt - 85

Unionbank CMP 140, Buy 134, tgt - 160

IDBI CMP 72.85, Buy 71, tgt - 80


Note : If there is very strong opening in markets on Monday, then buy at higher levels than indicated in this post.

Profit Realized - SBI Apr Futures

 

We have again got it right on target. In yesterday's post I had advised you to exit SBI Apr Futures within the first 30 mins of trade today. Check the blog post here.  I think we all could exit this position around 198.

In today's session SBI Apr Futures opened at 198.45 and it made a day high of 199.3, which makes me sure that all could at least exit near 198.

Time to calculate profit. We bought this lot of SBI Apr Futures at 190 ( check my recommendation here) and sold it at 198.

Profit from one lot of 2000 shares costing Rs 75000/- is (198-190= 8)X2000 = Rs 16000/- This trade has given Return on Investment as 16000/75000X100 = 21.3% in 4 trading sessions.

 For the moment let us wait and watch how things pan out in the markets. Today derivatives March expiry trades have been executed and tomorrow will be a fresh start with April contracts.

Tomorrow we will not enter trade. But if SBI Apr Futures is available at 186/188, then we should go ahead and buy it.

SBI Swings to Victory - Has Vijay Mallya Helped?

In today's trading session you have come out victorious after enduring tough conditions and some scary moments.

In last post I had assured you that there was no cause to worry about one position of SBI Mar Futures bought at 196. I had also asked you to square this March contract at 197/198. 

Well today SBI Mar Futures reached a day high of 198.7

By squaring off one lot SBI Mar Futures you have realized a profit of Rs 4000/- since it was bought at 196 and sold at 198 and the lot size is 2000.

That is not all. Icing on the cake is position of SBI Apr Futures we had picked up as recommended in this post. We bought this position at 190 on 28 Mar 2016.

Today SBI Apr Futures closed at 198.7 and this means that this position is presently offering you an unrealized profit of (198.7-190 = 8.7) X 2000 = Rs 17,400/-

I think we need to lock in such profit at the earliest. So now my recommendation is that as markets open tomorrow we should exit this position within first 30 mins of trade.

I wonder what gave fillip to banking sector in today's session. Could it be promise of Vijay Mallya to return Rs 4000 crores to banks by Sep 2016? Yes I do wonder!

Markets on Uncertain Grounds - Traders Should Buy Dips

Volatility has come swooping down on Indian markets.

But I think that is good news for traders. As things stand, every dip should be bought. There is every reason why you should be on buying binge.

What should you buy? I think banks are going to give good returns if you buy the dips. Reason is not far to seek. RBI is most likely to cut rates by at least 50 basis pts.

Expectation of our Finance Minister is also that the rates should be lowered by RBI. And when Arun Jaitley expects something, RBI Gov is most likely to deliver accordingly..

As for position of one lot SBI Mar Futures held, do not despair. It was bought at 196. Check here

This position should be closed at 197/198 by Thursday.

However keep holding the position of SBI Apr Futures which we bought on 28 Mar 2016. This position was taken as per my recommendation given on 23 Mar 2016 in this post. One should hold this position for a target of 205.

RBI Monetary Policy Review is on 05 Apr 2016 and rate cut is what will give boost to banks. Let us wait and see what Raghuram Rajan does to propel banks and Indian economy in this coming RBI Review Meet.