Stock Futures Trading Made Ezy - EKC

EKC has been a case of how fundamentals of a company and its performance has no bearing while making money through trading stock futures. When I gave my recommendation to buy EKC Sep Futures on 2nd Sep at http://www.stockezy.com/  some of my subscribers were taken by surprise, resulting in indignation. Their indignation was justified since here was a buy recommendation of a company which was trading at its 52 week low while the index was making new highs. Anyone can put two and two together and arrive at the conclusion that fundamentally speaking this was a wrong call. The trading room details are in this link here: http://www.stockezy.com/opinions/7298/buy-ekc-sept-futures/ . Such justified indignation was aired in the trading room which I m reproducing below:-

Posted by simanchal ratha - Thu, Sep 02, 2010 2:20PM IST

“

can you explain why you have recommended ekc ? is it for the reason that it is trading around its 52 week lows ?

”

But as I mentioned earlier, fundamentals of a sector or a company has no place in trading stock futures. It is all about timing your entry. Following are the reasons why I had recommended a buy of EKC Sep Futures, despite highly negative market sentiments for the company:-

1. From 27th Aug to 1st Sep, EKC was continuously getting support at 107 price level.
2. This accumulation by smart money was happening at lower band of Bollinger with the upper band suggesting a target of 120.
3. Strong resistance zone was also evident at price level of 121/122, suggesting that this accumulation at 107 price level will try to test that resistance zone.
4. My own customized Slow Stochastic was screaming out maximum tolerance of being oversold.

Hence armed with this knowledge I gave this buy call of EKC Sep Futures. Those who bought the scrip exited with intra-day profit ranging from Rs 6300/- to Rs 7500/- in 2 hours flat. As easy as that!! And finally in last trading session this scrip made a high of 123.2 , but that is just a point of academic interest.