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 15-Oct along with two weeks lists at one time.
Today's primary list has 13 stocks showing up. Indicates good money flow into the broader markets.
company symbol today's close price % rise today avg volume
ACE 72.3 7.8 405198
BANSWRAS 74.3 6 28487
BIRLAMONEY 43.7 10.8 424881
CINELINE 30.8 13.2 180006
DCW 15.4 2 784385
EVEREADY 148.9 3.8 675303
GENUSPOWER 29.1 7.4 314397
NAHARSPING 40.6 8 19160
NKIND 23 3.6 983
RATNAMANI 1267.4 2.6 18887
SHARIABEES 301.3 2.5 1237
SUPRAJIT 188.3 4.5 236990
TRIDENT 7.8 17.2 7525459
Same table as a picture.
In the secondary list we got 46 stocks.
company symbol today's close price % rise today avg volume
ACE 72.3 7.8 405198
ADFFOODS 431.1 3.2 149929
AKZOINDIA 2179.3 0.7 15297
ASIANPAINT 2040.5 2.7 2516397
BALAXI 741.6 5 8667
BANSWRAS 74.3 6 28487
BERGEPAINT 590.5 1.2 1609781
BETA 105.7 4.6 14192
BIOCON 452.6 1.1 5574845
BIRLAMONEY 43.7 10.8 424881
CDSL 484.9 0.5 2227573
CINELINE 30.8 13.2 180006
DABUR 513.8 0.6 3307481
DCW 15.4 2 784385
EVEREADY 148.9 3.8 675303
GATI 58.4 9.9 776992
GAYAPROJ 18.4 4.8 345735
GENUSPOWER 29.1 7.4 314397
GRASIM 754.5 1.4 3596955
GRINDWELL 562.1 3.1 36929
GUJRAFFIA 12.9 4.9 624
INDOCO 272.9 6.5 319490
IPCALAB 2253.7 4 368315
JUBLFOOD 2366.2 0.9 1148816
LINDEINDIA 802.1 3.2 136454
MAGNUM 5.3 5 19471
MANAPPURAM 166.4 5.9 10235618
NAHARSPING 40.6 8 19160
NKIND 23 3.6 983
ORIENTBELL 106.8 7 61649
PGIL 155.2 5.5 12287
PPAP 239.8 0.5 85964
PRAENG 6.7 9.8 30335
PRECWIRE 152.3 19.5 46994
RATNAMANI 1267.4 2.6 18887
SAGCEM 521.6 1.1 29741
SEQUENT 156.1 1.5 2010805
SHARIABEES 301.3 2.5 1237
SUNDARMHLD 61.4 0.6 153474
SUPRAJIT 188.3 4.5 236990
SYNGENE 559.8 1.2 1086643
TECHM 822.5 3.9 6052625
TEXMOPIPES 15.5 9.9 68086
THEMISMED 373.8 4.5 17565
TRIDENT 7.8 17.2 7525459
ULTRACEMCO 4097.8 1.2 558595
Same table as a picture.
Commentary:
CINELINE showed up again. As there is unlock 5.0 news at the beginning of the new month that cinema halls will open for 50% capacity from 15th October. Every month we see some expectations of unlocking. As movie halls are locked down from a long time, these stocks cineline, pvr, inoxleisure are rising cyclically every month once. Cineline showed up earlier too and I traded it for a 18% profit within 10 days from this list. Today too it showed up.
However Cineline is not the best stock in that sector. It kept falling from 120 rupees since I saw it two years ago and booked big loss in it later. Now it is at just 30. Recently I was able to trade it from 28.3 to 33. For short term it can be traded with some risk tolerance and quick insight to get out before things get worse. These should not at all be held after market sentiment turns negative. Rather inoxleisure is a good long term stock. It kept rising through years and only fell this time due to lockdown. After finding support below 200 after March crash, it tried to rise and then fall every time there is expectation of unlock.
These stocks (first list) can be traded knowing the news and with risk management. Take second chance to exit if things don't appear to be good. Whereas fundamentally good stocks from the same sector can be traded after seeing these stocks. One needs to buy on dips and hold till a good rise.
So we can summarize that the primary list in and itself is not the one to pick stocks to trade. It has limitations. But it works differently at different times. After a market crash we get to see which sectors are getting the boost. We can think about the major events impacting the market and decide sectors to invest if we can correlate the reality with sectors getting the early buying support. Later as market gets into stable uptrend, many stocks show up as money rotates from large caps to small caps. That is a good time to pick these stocks but buy on dips after a couple of days of pullback or a 50% fibonacci retracement. % wise they give good gains in a short time. That is the main highlight of picking these for short term. But the window of time in which it works for short term high gains is short and happens rarely.
Rest of the time, the market will be just range bound either at the upper end after a big rise due to some recent positive announcement from govt. like stimulus package or corporate tax cuts or a positive budget, or it could be at the lower end after a major crash like the March crash or the crashes of yesteryears when ILFS, Yesbank, crisis brewed or LTCG tax introduction in 2018 budget etc. Things don't immediately move after a major news' impact has happened for some time. Market consolidates and waits for news. At that time buying on pullback and selling on rise can be done. But it works well on growth stocks or fundamentally valued stocks. In many small cap junk stocks, they do not rise to cross previous support levels that become resistance as they fall quarter after quarter.
Many good stocks show up in secondary list with or without much gains. Today we have Bergepaint, biocon, ipcalab, syngene, techm. These can be bought again and again without fear of market falls. Especially good when broader market falls but there is no stock specific negative news.
Techm is rising as new quarter will get earnings dates for IT companies after first week of the first month. So IT companies like TCS, Wipro, Infy, Techm, can be traded in FnO.
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