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 primary list has 14 stocks showing up.
company symbol today's close price % rise today avg volume
APCL 198.3 6.3 63892
APOLSINHOT 601.3 20 3362
CIMMCO 22.4 7.9 77952
DFMFOODS 362.1 7.9 188586
GAYAPROJ 19.5 9.2 560140
GOACARBON 242 20 58956
GRAPHITE 199.6 3.4 872517
LTTS 1810 9.8 178484
LUPIN 1055.2 0.8 4988088
MURUDCERA 16.6 11.8 70849
PHILIPCARB 135.2 7.2 1761998
RANEENGINE 224.8 19.9 8280
RBL 659 13 48785
TI 17.9 4.1 97781
Same table as a picture.
In the secondary list we got 49 stocks.
company symbol today's close price % rise today avg volume
ACCELYA 1045.8 0.2 25568
ADANIGREEN 705.1 5 1739421
APCL 198.3 6.3 63892
APOLSINHOT 601.3 20 3362
ASTRON 47.9 4.2 66798
AUBANK 745.2 1.7 501364
BIRLAMONEY 45.1 1.6 510093
BSOFT 203.3 5.3 3437209
CIMMCO 22.4 7.9 77952
CTE 26.6 3.5 16997
DFMFOODS 362.1 7.9 188586
GAYAPROJ 19.5 9.2 560140
GDL 96.8 0.9 157302
GOACARBON 242 20 58956
GRAPHITE 199.6 3.4 872517
IGPL 306.9 3.1 106650
INFOBEAN 167.8 5 46213
INVENTURE 18.1 2 23895
JBMA 249.1 2.6 81827
JINDALPOLY 472.6 1.1 105314
KAJARIACER 530.9 1.1 361755
KPITTECH 119.3 5.2 1172553
KPRMILL 670 2.9 81910
LOTUSEYE 31.8 3.2 39010
LTTS 1810 9.8 178484
LUPIN 1055.2 0.8 4988088
MATRIMONY 685.4 4.3 28842
MURUDCERA 16.6 11.8 70849
N100 871.2 2.9 66242
NAUKRI 3579.4 2.9 506728
PHILIPCARB 135.2 7.2 1761998
QUICKHEAL 168 5.1 956865
RAMASTEEL 43 1.9 10404
RAMCOCEM 768.1 1.5 1027576
RANEENGINE 224.8 19.9 8280
RBL 659 13 48785
REDINGTON 122.9 5.7 950630
RELIANCE 2280.7 2 16547051
SAGARDEEP 59.5 4.7 98908
SAREGAMA 595.2 6.4 33606
SMSLIFE 619.5 3.7 27626
SSWL 484 2.4 62315
SUBEX 13.2 10 2102032
SUTLEJTEX 30.6 10.1 175173
TANLA 294.1 4.8 641185
TI 17.9 4.1 97781
TIRUMALCHM 78.2 4.3 1056482
VISASTEEL 6.7 4.7 12681
ZENTEC 85.3 0.7 793377
Same table as a picture.
Commentary:
We can see now that the market is mostly stable. Although broader market is mixed. It is in this kind of market our lists show opportunities. Today Reliance showed up in the secondary list. Because its quarterly results are coming. Shalby posted good quarterly results yesterday. It showed up at 95.8 in Friday's secondary list. Because it had already risen a lot by then. It had shown up at 87.7 again in the secondary list on 30-sep. It would have shown up earlier too but I wasn't posting secondary lists prior to that time. So not all that shows up in the primary is the best. But it has the potential for multibagger stocks in a short time. But with less probability as it can happen that 4 out of 5 times it may not be multibagger. Even then it has the potential to double capital within a year. Secondary list gives more stocks but much more reliable or has higher probability of making good gain by picking stocks from this list as it shows many familiar uptrending stocks like it did Reliance today and Shalby two times already. It has shown Tanla too today. BSOFT and ADANIGREEN. So secondary list is the way for buying stocks which you already hold in small quantity or pick new stocks that have just begun the trend or still trending.
Seeing Shalby's quarter results i bought its shares today at 103.85. Good quarterly results set a stock into a trend and the momentum continues for sometime. If not, atleast a second buy on pullback gives a chance to exit with good gains like we saw repeatedly with TIPSINDLTD. TIPSIndltd is doing such momentum moves because it had improved its earnings recently. Now I lost interest in that stock as it appears to be losing momentum. But why worry about lost opportunities? We have opportunities showing up in my lists daily?
I realized there is no need to hunt for stocks anywhere, from any market statistic. My lists are very good. It is just that the lists tend to be big and don't separate familiar, popular, small cap, etc. We need to do that extra work. So I did that on yesterday's list and shortlisted jackpot stocks as well. CAPACITE and JSL. These should be bought on pullback.
I am doing such short listing of few stocks once a week or two. Last week I noted Cybertech, Texmopipes. Cybertech pulledback for two days and today it is up 20% at upper circuit limit. Also noted Jbchempharm and APCL from my lists for short term trading. Both did well today rising > 5%. I even bought jbchempharm and alkem few days ago and sold to reduce exposure and rather to buy into ever sinking PFC. What a stupid mistake? This is the psychology problem.
Alkem didn't show up in the lists but still I bought it because of recency bias. I traded it earlier. It is okay if I traded it earlier. That is how we build familiarity. But it is yet to show up in the list. It is not bad but buying in a hurry I could get stuck and end up unloading to reduce market exposure as increased exposure to the market is the key to increased risk. If I bought only jbchempharm and kept it, i would have had some gain today. As it showed up in the list, and knowing that a buy in a stock from the list is good as per performance review lessons done n the past, i could have bought today or yesterday at lower price to get more gain. Missed all that because random decisions are still happening when I decide which stocks to buy. So today I picked Shalby from my own lists.
The second stupid thing with PFC is a very natural instinct to average out buying price that every trader does in the beginning before they master psychology part. Don't average to losers. But the reasoning I gave is that my overall exposure is still limited and it is the last sample to buy. I can wait till they rise even if it takes few months as the broader market is neither strong nor weak. There is no stock specific news. They would rise but may take their own time. So I will stick to that. But avoid such things in the future.
Here is a great list I am posting everyday, that one needs to learn to filter and follow some rules to buy and manage the trades to get out with profit. Avoid second/third trades from the same stocks as we anyway get new stocks daily. If the same old stocks shows up in the list, there is potential for gain or second chance for exit. If it doesn't then we could be preparing to get trapped. This happened for me with TNPL. I did profitable trade once. And entered again. This recency bias and choosing an already traded stock over an unfamiliar one, leads one to get trapped by buying something that doesn't show potential for momentum, or buying in hurry. This should be avoided.
Good thing is that these stocks show potential for second or third chance to exit, albeit with increasing losses with more chances. So the earlier we realize that we are getting trapped, the better it is to reduce losses and get out. A blind support level based stop loss is not good in these stocks. Because they would fall a little more and rise again.
I have also decided to rename this list as a list to pick stocks and not as short term study list. Because enforcing a 2 week timeframe on these doesn't cut the ice all the time. We need to pick a stock, buy on pullback and get out on high gain (if momentum continues) holding it as long as momentum is there or get out on second or third chance, if things don't go well as expected. Just get out with some loss if there is an unexpected bad major news for company or broader economy. As this is the way to manage positions for better returns, the list cannot be treated as a portfolio to invest in all at one day and sell after two weeks and see the gain/loss. I had this in mind from the beginning but wanted to see how one can use the list to make profits. Now that it has become clear (see earlier posts with commentary every day), it is now a stock selection list for a given day.
Stocks to Pick from Today's List
From the primary list, I find below stocks to be good for long term. That means one can make good potential gains from these in the short term and can also hold for long term if the market falls.
APCL
GRAPHITE
LTTS
LUPIN
LUPIN
It is difficult to go through so many stocks daily. The secondary list is even bigger. But I know KAJARIACERA is a good stock. It is at moving average now for a potential short term trade. As it already had a long run up, it may be good for more trend or for SIP for a long term trade. BSOFT is also good stock. REDINGTON too. KPRMILL and KPITTECH too. These are good for long term. That means if one buys and gets stuck, one can confidently buy on pullbacks too as the long term stocks get support in downtrend. Provided there is no company specific major negative news.
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