"My dog is so lazy. He doesn't chase cars, he just sits on the kerb, taking down license plate numbers."
- Rodney Dangerfield
Since mid of August, I have started doing this as a study so the readers of this blog can learn along with me. I am also giving valuable list of stocks for quick profit. If anyone bought Kiriindus and Trent on the morning of 25th August as they showed up in 24th August list, they would have gotten a profit of 4-6% by evening.
I got inspired for this selection when I once noticed Indigo on daily chart and next day bought its CE at 9 and sold at 18 after few hours. Later traded TNPL, INFIBEAM, DIAMONDYD, JOCIL, BLISSGVS, ATULAUTO, during mid weeks of August and booked about 5% profit in a short time. Every stock may not rise the very next day. But I observed the potential for a rise in the next 10 days, on few stocks over a historical period of five years. Thus I decided to make such list everyday and trade familiar stocks or observe them for building trading watchlists to grow familiarity to trade later.
Today's short term selection list for short term study (2 weeks timeframe). Their performance will be reviewed after 13-Oct along with two weeks lists at one time.
Today's primary list has 13 stocks showing up.
company symbol today's close price % rise today avg volume
GATI 57 15.1 706962
GUFICBIO 92.4 13.7 357121
IZMO 34.6 1.6 24844
KANORICHEM 41.8 7.2 69210
KPRMILL 667.2 11.1 67959
KRISHANA 60 4.3 1954
NETF 135 3.1 1023
PFOCUS 41.4 10 95757
RAMASTEEL 41.4 3.1 11169
SNOWMAN 35.4 5.8 633468
TARMAT 42.4 5 21280
TRIGYN 52.1 4.9 91909
WELINV 258.4 4.3 1293
Same table as a picture.
In the secondary list we got 43 stocks.
company symbol today's close price % rise today avg volume
AMBER 2072.5 1.8 350535
ASTRON 47.2 5.9 64414
BLISSGVS 160.5 6 841929
CEATLTD 995 5 231612
CREDITACC 722.1 2.9 133438
DCW 15.3 0.7 765331
DSSL 30.1 4 12558
GANGESSECU 47.6 18.2 8262
GATI 57 15.1 706962
GOKEX 62.6 4 297412
GRAPHITE 196.3 2.2 836162
GUFICBIO 92.4 13.7 357121
HEROMOTOCO 3174.9 2.8 1560544
ICRA 2816.7 0.6 3571
IDFC 32.8 3 10663666
IEX 209.4 4.8 1493954
IZMO 34.6 1.6 24844
JASH 186 3.6 13591
JINDRILL 76.3 5 16039
KANORICHEM 41.8 7.2 69210
KPRMILL 667.2 11.1 67959
KRISHANA 60 4.3 1954
MADHUCON 3 3.5 21088
MMFL 333.6 1.7 35798
NETF 135 3.1 1023
PAPERPROD 301.6 3.6 285886
PFOCUS 41.4 10 95757
PHILIPCARB 130.7 2.7 1659056
RAMASTEEL 41.4 3.1 11169
RESPONIND 104.1 3.2 379301
ROSSELLIND 157.3 5 35464
SIEMENS 1260.1 1.1 780279
SINTERCOM 76.9 2.5 7560
SNOWMAN 35.4 5.8 633468
SOFTTECH 64 0.9 10144
SPECIALITY 36.6 1.4 121843
SUBROS 262.8 9.1 125651
TARMAT 42.4 5 21280
TCS 2488.4 2.6 4341995
TIRUMALCHM 78.8 5.7 904502
TRIGYN 52.1 4.9 91909
VSSL 80 3.8 10296
WELINV 258.4 4.3 1293
Same table as a picture.
Commentary:
You could be wondering why TIPSINDLTD doesn't show up again today despite rising 14% today. It really has a fantastic rise and I noted it for jackpot trading. Few others that missed to trade in such a way are tanla, lasa, iolcp, granules, marksans. To note such stocks again, it is important to continue the daily review and note the best performing stocks. Or atleast once a week getting a review 5 day's lists at one time also helps to note stocks so they could be bought on pullback.
In these lists, stocks show up on the way up with potentially some more room for uptrend. Once it comes into the list, it could go to heaven but not show up here. All those stocks that did such rise like Aartidrugs, tanla, lasa would surely come into this list early on. With a trending trading strategy one would make the most of them buying steadily on pullbacks and holding if it doesn't fall too much.
The same stock could show up again only if it had a pullback like TIPSINDLTD did due to broader market fall. If it is stock specific, we need to check news. The news will be clear once the selling is over. The old adage saying "buy the rumor, sell the news" will always work. When it is not clear what is the news, better to stay put and not do anything. Without knowing anything it is easy to get trapped.
Today I see two nifty stocks in the secondary list. TCS and Heromotoco. Something good is expected in them. These can be watched to buy their options on pullback. TCS would have quarterly results soon (in two weeks). An upmove two weeks before quarterly results is common.
Today NIFTY touched MA level with over excitement at the open with a gap at the open and continued to fall. Rest of the day there isn't much momentum. Due to lack of news. The sentiment is looking like the market will fall into a downward sloping channel. Technical analysis works well for few days of trading before some news comes out. I guess that would be in another seven days. Already three days passed since the lowest level.
Stocks showing up in these lists shows that we don't have very bad crash (yet) like the March time. It is more like the January/February time. However I don't expect March type of crash simply because we had some big stimulus announcements around the world after March mayhem. It is not reversed. So we won't go to those lows. However we might touch the mid point from the recent peak to that bottom, if some bad news come out. Or nothing comes out. In the latter case, it will be field days for swing traders and technical traders as the market works well for them when there are no major events happening.
For traders who trade breakouts it will be a period of whipsaws. And 2/3rd of the time markets will be like that only. We had a good period of breakouts for 4 months or so. Another 8 months of whipsaws is due. Atleast a four month break from breakouts. Let us see how things go.
Meanwhile one should only focus on buying good companies on dips. It is a buy on dips market. Many companies' valuations are sky high. What happened with HAL and GMMP Faudler can happen with any stock. They were doing quite well. Then the stake sale announcements ruined the party.
HAL went upto 1200. I bought at 712 one day and after two days sold at 798. Within next ten days after few days of break, it kept going up again and again till 1200 levels. I didn't buy it after that. Then govt. announced stake sale price at 1050. It gapped down to 1030. Then it kept falling never rising above 1000 again. Now below 798.
GMMP Faudler has PE ratio more than 130 having risen from 80 levels to 6000 levels in the last 12 years. Its business is doing good. So no issues there. But the promoters planned to takeover their parent business as that helps them grow further. But for that money they decided to sell stake. They announced it just a day before and the stock got stuck at LC. It has low volumes, low float. From 5200 it kept falling to 3500. 3500 was sale offer price. Now after breaching that level today, it jumped to UC. One can wonder what kind of market is this? The business is good. Earnings are only growing. So one need not worry doing SIP on it. Buying it on dips is always a good idea till the fundamentals change in a big way. That takes some big event anyway.
Similarly other companies are also realizing that this drama of the market falling badly one month, then rising too much non-stop in later five months, is giving a second opportunity for stake sales in an economy that is cash-strapped due to bad banking system. When such news comes out the same investors who kept buying stocks even at peak levels, will not give support after a sale price level is announced. One should only buy on pullbacks.
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