Stock Futures Trading Made Ezy - Punj Lloyd

What can be said of Punj Lloyd! A company with such strong order book and global presence has been trading at 52 week low on 1st Sep. And on 2nd Sep I gave a call to buy Punj Lloyd Sep Futures to my subscribers at http://www.stockezy.com/ . Another call which could be termed as contrarian to market sentiments. Then why did I give such a call? Find the reasons below:-

1. Bollinger Band contraction had been significant with price of 1st Sep touching the lower band of this narrowed Bollinger. The upper band was getting formed at price level of 120.
2. Trigger line had started crossover of MACD line from below zero.
3. In Ultimate Oscillator there was bullish crossover of line of 30 from below.
4. In ADX there was evidence of jump in buying line with decrease in volatility.
5. And finally my own customized Slow Stochastic was again screaming oversold to maximum level.

From the above signals I was convinced that whatever the TV channels might be saying, there was merit in buying Punj Lloyd at that point. I was sure that the scrip would  move up to 120, albeit at a slow pace since the volatility index was dropping sharply. However those who entered the scrip could book intra-day profit of Rs 3500/-. One of my subscribers who had carried the position overnight could make a profit of Rs 7000/- next day. That's how easy it is!! From purely academic standpoint, Punj Lloyd made a day high of 119.6 in the last trading session.

Trading Room activities are contained in this link: http://www.stockezy.com/opinions/7297/buy-punj-lloyd-sept-futures/