Saturday, October 10, 2020

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Stock Selection List for Short Term Study (2 Weeks Timeframe) from 09-Oct-20


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 23-Oct along with two weeks lists at one time.

Today's primary list has 12 stocks showing up.
company symbol today's close price % rise today avg volume
AUBANK 741 1.7 510384
BANARBEADS 55.3 5.1 26612
BIRLAMONEY 45 11.4 481245
CAREERP 178.8 10.8 95664
GUFICBIO 93.2 5.2 348672
HAVELLS 710.2 3.4 1733354
KPRMILL 665.6 3.1 78752
LICHSGFIN 306.1 6.7 5555064
MARALOVER 13.3 7.3 13055
PARAGMILK 115.5 14.8 1302700
SIYSIL 154.9 1.1 207273
SSWL 482.8 5.5 60171

Same table as a picture.

In the secondary list we got 43 stocks.
company symbol today's close price % rise today avg volume
ACE 72.2 1.1 416424
ADROITINFO 6.6 4.8 5383
ALLSEC 276.6 1.2 12398
ARVIND 35.3 0.3 2871081
ASAHISONG 224 0.2 64790
AUBANK 741 1.7 510384
AXISBANK 468.1 3.6 24471515
AYMSYNTEX 27.9 2.8 19724
BAJAJELEC 521.3 1.9 442498
BANARBEADS 55.3 5.1 26612
BIRLAMONEY 45 11.4 481245
CAREERP 178.8 10.8 95664
COLPAL 1462.8 0.8 636546
CONFIPET 23.7 3.5 409592
GENUSPOWER 29.4 1.9 308567
GUFICBIO 93.2 5.2 348672
GUJAPOLLO 234.2 3.6 21612
HAVELLS 710.2 3.4 1733354
KILITCH 97.5 10 12145
KOTAKNV20 61.8 1.9 10848
KPRMILL 665.6 3.1 78752
KRISHANA 62 3.2 2356
KSL 230.1 3.2 105429
LICHSGFIN 306.1 6.7 5555064
MARALOVER 13.3 7.3 13055
MOHOTAIND 10.3 9 7003
MOTHERSUMI 121.1 0.8 16045933
NAHARSPING 44.6 5.7 21583
NETFLTGILT 22.1 0.7 39623
ORIENTBELL 111.8 7.8 56405
PARAGMILK 115.5 14.8 1302700
PFIZER 5021.9 0.4 66207
RSSOFTWARE 23.7 4.9 41325
SAREGAMA 575.5 2.8 35989
SHALBY 95.8 9.6 303905
SHK 92.7 8.4 1008990
SHREECEM 21198.5 2.2 65311
SINTERCOM 80 1.3 7287
SIYSIL 154.9 1.1 207273
SNOWMAN 38.9 7.8 675756
SSWL 482.8 5.5 60171
TERASOFT 30.3 7.5 37653
UMANGDAIRY 47.2 6.7 13271

Same table as a picture.


Commentary:

Today I sold off Alkem and Jbchempharm, that I told I bought yesterday. Because the market has been gaining since 10 days and IT, banks, few cement and pharma stocks have supported this rally. Bank/IT stocks had wild run. So I sensed it is better to buy more on pullback. For that capital needs to be free. I had adanigreen one sample bought at 670. As there was some news about it and it already fell for many days without participating in the market rally, decided to sell it. I had little profit in it, that would offset little loss of Alkem and Jbchempharm. Then I bought one sample of PFC as it seems to have had enough of downtrend. Sometimes such stocks can wait and then rise on their own. With this I have exhausted my short term trading capital for two stocks: BEL and PFC. I can only add more to them if they make a really bad fall with the broader market downtrend like the one in March. Otherwise I will wait for them to get back into these lists. Then also I will add. Till then I can't do short term in any stocks other than NIFTY 50 or NIFTY 100. Only those are suitable for short term.

Meanwhile I have little capital for options trading. Not intraday but eod to eod (end of the day). I can use that for earnings calendar trades. 

In long term trading, I closed COFORGE today with 27% gain from the stock in a month. Due to market's wild moves, I couldn't scale it up well so it is less profit on capital. It happens sometimes.

Interestingly careerp showed up today. It is an IT stock. Since few days I was wondering if I should buy careerp or jocil as i noticed both at the same time few months ago and traded. But JOCIL's sector is not in trend now. Careerp's sector is in trend. This gives me one learning. We are seeing IT stocks rising recently due to earnings calendar and past quarter showing good performance as they are less impacted from the lockdown. So using such information, we can that sector stocks from our watchlist. In a way I did so with COFORGE. Initially bought after seeing Zeelearn in the list one day. Then realized it is IT stock. But after few days it rose. And fell to give up half the gains. I would have sold for 8% gain. But I didn't. Because I saw that IT stocks would rise as earnings dates will be from second week of October.

There is another thing I wanted to talk about. LICHSGFIN is rising since few days. Actually it has FNO too. It is not a small cap. So short term works well for it. It showed in the lists earlier and I took 3.6% profit from it. It fell more than 12% from there. But it could have been bought to trade till now and sell for short term profit or scale up. It might not have shown up if RBI MPC committee announcements today had any negatives. But then the loss would have been minimal or small profit if we closed on this news. For positive or neutral news, it is a gainer. So for short term trading, we can filter with volume and also large cap segment stocks. They move nicely in straight lines without too much of confusing candles overlapping a lot and rising/falling in a single day all of a sudden. These stocks lend themselves well for short term trading. In other words these are suitable for short term. This kind of conclusion I have drawn earlier as well. Large caps for short term and small caps for long term. But we are getting more clarity on how to enter, exit as we observe more of these lists.

Obviously it is safer to not take full exposure to the market at this time. It had a fantastic rally. And in case a sudden negative major event happens, we can't buy good stocks after crash. However market seems to have reached a top. It may not breakout. It is not supported by broader market. So it will pullback and go up. Basically range trade around the higher levels of 12k for NIFTY and whatever levels are there for stocks. That means waiting for pullback is better strategy with limited exposure to some stocks.

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