Stock Selection List Short Term Study (2 Weeks Timeframe) for 16-Sep-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 30-Sep.

company symbol today's close price % rise today

ALKALI 53 6.4

AUTOAXLES 768.2 11.7

BHARATRAS 10078.7 6.2

EXCELINDUS 909.3 6.7

FIEMIND 631.5 8.7

GABRIEL 112.3 5.1

HIMATSEIDE 87.8 10.8

INDOSTAR 299.9 15.3

ITDC 256.2 9.8

JINDALSAW 70 7.9

LAKSHVILAS 22.4 9.8

LINDEINDIA 814.6 11.3

M&M 639.5 4.2

MANINDS 74.5 17.6

OLECTRA 72.8 10

RAMCOCEM 768.1 5.2

REPRO 432.1 6.9

RSYSTEMS 114.4 6.6

SETFNIF50 119.8 0.7

SMSPHARMA 93.7 5.3

Same table as a picture.

Commentary:

Short term trading is best done on large caps, as I have noted when reviewing the list I gave in January. Today I sold Syngene for 15% gain. It is not a small cap. It had news recently so that gave some buoyancy to it. In the morning seeing TNPL, i thought why am I trying short term with small caps. At the close TNPL was up and even touched a good high level intraday.

Nevertheless when looking at the charts of large cap stocks vs. small caps, I can not ignore but notice this difference. Large cap stocks are repeatedly trade-able for short term. And NIFTY is the best for ultra short term scalping in options. I traded few times this way but did not see it practical as ultra short term is best suited for full time traders who can trade all opportunities that arise in the day and not regret closing them with small profits. For an infrequent trader, taking small profits doesn't help after getting hit with an occasional big loss. Nevertheless daily candle based short term trading can be done on NIFTY stocks. Seeing M&M in today's list reminded me to write about it now.

But the short term list that I am making here is not the way I would trade the NIFTY stocks for short term. I have arrived at this list primarily for capturing big moves in bull markets. So small/mid caps can give huge gains. However it seems best to filter out the small caps and stick to large/mid caps from the list. For large caps, options can be traded. Small caps can be selected only when it is already familiar after years of observation and having good fundamentals.

Having made profits in BEL and PFC starting them as SIP, three months ago only to sell after the 5th weekly sample, I decided to trade them again but for medium term. As 5 week SIP lead to smaller exposure, hence small profit on capital though it was 12% gain from the stocks. Now they are hardly going up. However since few days PFC is rising daily. Same is the pattern with Nifty, smallcap, mid cap indices as well and many Nifty stocks. Then I realized again if I were to do short term trading, I can also do with large caps or their options following any reliable technical pattern. The small caps should be filtered for much larger moves without the restriction of the two week time.

TIPSINDLTD went up a lot today already. Waiting for it to consolidate.

BOSFT crossed 200 today with 11% gains. It showed on 8-Sep at 174. While these lists catch such stocks too but as they show up many stocks, taking any stock randomly is not a good idea. But when we already know good long term stocks or already holding them, when they show up, we can scale up the exposure and sell in a short time. Perhaps this filtering is best suited for position scaling rather than short term trading.

I need to rework the lists as some good stocks don't show up when they make move. Recently Astrazen and Avantifeed are missed. Maybe because their recent move had not sustained for more time. Dixon is having sustained uptrend but it is not showing up because it is not making huge % moves in short time. It would have surely anyway shown up few months ago. Having a database of these daily lists is useful based on when we use them for a given purpose (long term initiation, position scaling or short term trading).

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