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 20-Oct along with two weeks lists at one time.
Today's primary list has 28 stocks showing up. What a rally it turned out to be in the last 7 days!
company symbol today's close price % rise today avg volume
AKASH 241.3 0.7 20165
ARIES 83.2 2 63367
BASML 98.9 7.5 8836
BRIGADE 179.8 6 312100
GANGESSECU 46.3 7.1 8589
GMDCLTD 47.8 4.7 1745694
GODREJAGRO 529 3.9 201294
GTPL 110.5 20 130166
HAVELLS 688 2.7 1820326
HDFC 1934.4 8.4 4532933
HERCULES 96.8 8.3 163666
HESTERBIO 1850 9.9 18788
IFBIND 646 7 189919
KAYA 233.8 4.8 20308
KCP 65.5 11.3 449541
KITEX 110.6 6.6 193686
LAXMIMACH 3861.9 8.1 11104
LIBAS 37.6 11.1 51267
NATHBIOGEN 323 10.6 76903
NAVKARCORP 28.1 3.1 396467
PALREDTEC 28.4 5 6896
PDMJEPAPER 14.9 2.1 115615
POLYMED 495.6 6.5 254479
SAGCEM 529.9 2.6 29710
SIYSIL 155.7 7.2 179889
SOBHA 262.1 9.4 457114
TATAINVEST 889.6 4.2 41823
THYROCARE 884.3 14.1 326792
Same table as a picture.
In the secondary list we got 95 stocks.
company symbol today's close price % rise today avg volume
ACC 1437.7 1.3 872955
AKASH 241.3 0.7 20165
ALANKIT 18.6 2.2 454920
AMBUJACEM 225.3 1.8 3788032
AMJLAND 20.1 5.5 42908
ARIES 83.2 2 63367
ASHIANA 80.5 5 77917
AUBANK 734.5 9.5 536963
AURIONPRO 77.6 4.9 23280
BASML 98.9 7.5 8836
BRIGADE 179.8 6 312100
CNX100 11770.8 1.2 58059
CNX500 9622.4 1.1 58059
CNXSERVICE 15416 2.2 58059
COX&KINGS 1.5 3.4 445383
GANGESSECU 46.3 7.1 8589
GMBREW 413.4 2.7 51765
GMDCLTD 47.8 4.7 1745694
GODREJAGRO 529 3.9 201294
GOLDIAM 132.4 3.8 74505
GRANULES 382.6 0.7 4989203
GRAPHITE 197.5 2.3 853754
GRASIM 757.7 1 3602702
GSFC 66.3 3.4 1276506
GTPL 110.5 20 130166
HAVELLS 688 2.7 1820326
HDFC 1934.4 8.4 4532933
HDFCNIFETF 1222.8 1.5 1512
HDIL 5.3 5 502784
HERCULES 96.8 8.3 163666
HESTERBIO 1850 9.9 18788
HIRECT 136.5 4.7 44146
ICICINF100 126 0.4 8103
ICICINIFTY 123.2 1.2 151516
ICICISENSX 425.8 1.3 1668
IFBAGRO 343.4 2.9 12618
IFBIND 646 7 189919
IMPAL 568 2.2 1255
INDIGO 1330.6 2.6 3143761
INFIBEAM 82.8 4.9 951762
JITFINFRA 7.8 4.7 5953
JSWSTEEL 291.4 0.4 9344336
KAYA 233.8 4.8 20308
KCP 65.5 11.3 449541
KELLTONTEC 45.2 5 487033
KINGFA 500.4 0.6 11755
KITEX 110.6 6.6 193686
KOTAKNIFTY 121.1 1.1 147227
KOTAKNV20 60.9 0.6 10812
LALPATHLAB 1996.2 3.6 146720
LAXMIMACH 3861.9 8.1 11104
LIBAS 37.6 11.1 51267
LTI 2681.2 3.9 234049
M50 114.2 1.4 18936
MAANALU 74.8 1.2 44777
MAHLOG 362.6 2.9 122931
METROPOLIS 1947.5 1.8 128128
MONTECARLO 186.9 3.7 55850
MUTHOOTFIN 1196.3 3 2940860
NATHBIOGEN 323 10.6 76903
NAVKARCORP 28.1 3.1 396467
NETF 135.8 0.8 1023
NIFTY 11662.4 1.4 58059
NIFTYBEES 124 1.3 1510048
OMMETALS 18.1 1.7 52439
PALREDTEC 28.4 5 6896
PDMJEPAPER 14.9 2.1 115615
PHILIPCARB 131.8 0.7 1724301
PIIND 2044.7 1.2 315017
POLYMED 495.6 6.5 254479
PRAJIND 77.5 2.9 1790374
PRSMJOHNSN 60 3.5 317319
QNIFTY 1198 1 38
RELAXO 677.6 0.5 268514
REPCOHOME 181.4 5 487419
SAGCEM 529.9 2.6 29710
SETFNIF50 120.3 1.4 211605
SHAKTIPUMP 195.9 4.9 65379
SHIVAMILLS 25.2 0.8 11403
SHRIRAMEPC 4.1 3.8 211762
SIYSIL 155.7 7.2 179889
SKIPPER 51.6 3.3 161079
SOBHA 262.1 9.4 457114
SPCENET 1.2 4.3 7197
SWANENERGY 128.9 1.7 167971
TATAINVEST 889.6 4.2 41823
TATAMTRDVR 65 4.6 10866938
THYROCARE 884.3 14.1 326792
TIMETECHNO 41.4 7.3 650274
TIPSINDLTD 306.9 1.7 86610
ULTRACEMCO 4136.1 2.2 549992
UTINIFTETF 1237.6 0.7 4881
VAISHALI 44.5 15.7 18971
VENKEYS 1543.1 4.4 256875
VTL 824.4 0.2 29394
Same table as a picture.
Commentary:
The movement in NIFTY has been good in the last 7 days. It almost recovered all of the losses. But it is not supported by the broader market. Mid and small caps underperformed. Many stocks didn't gain much from this rally, especially the last 3 days. If the market is stable they could rise. Otherwise we could seeing range bound market. Then buying on dips in good stocks is the way to trade.
I was about to buy Esselpack, third sample, few days ago. But I realized I could be trapped at the peak to buy as 7-10 days haven't passed since its lowest level. Moreover it had a stake sale at 255 and it is not rising above that. So I avoided buy and decided to give it time. Same for all stocks that I am holding. Long term and short term.
However today I bought one sample of it at little lesser price than few days ago. It was more than a month that it made high level. Market moved well. It is now available relatively cheap. And I am committed to add 3 more samples if it were to fall into downtrend. Because it is fundamentally good and a growth stock as well. So buying on dips is a strategy to follow.
Then I realized that now, i should not add onto existing positions just to average the prices. As we are in a market which was like this since 2018 where nifty goes to new highs but broader market doesn't participate, we should be picky about what we buy into. My way forward is like this. I will focus on few good stocks that have future growth and investor interest. Some that come to my mind are dixon, alkylamines, astrazen, divislab, cgcl, adanigas, in that order of potential gains. Instead of trying to reduce buying price for existing stocks, I will buy these on dips. When these rise, I will have profit that can offset the losses of existing stocks. In case existing stocks also rise, i get out of them consideirng it as second chance to exit. I have taken short term positions in bel, pfc because of recency bias effect. I made profits doing SIP in them during the months of June-July. As I got lesser profit due to averaging effect, decided to trade them buying on dips this time. But these are PSUs and not outperforming type stocks. They are not the stocks that I talk about having "investor interest". These are not bad stocks either. But if we are stuck they can take quite a while to recover. For these too my exposure is limited. But till the broader market shows bullish trend, I won't add to these.
Looking back, it can feel like we missed a good ride from the bottom of the previous 8 days. But if we try to fish them, it will be difficult to avoid getting trapped in crashes of March kind. The lockdown effects, global cues, US election uncertainties weigh on the market. This is why investors have a hard time deciding what to buy. So it seems buying Nifty stocks on pullback is fine most of the time. It is also good to buy fundamentally good stocks on dips, the growth type. Once market settles, at some point bullishness reaches extremes and all stocks rise in a short time. Till then it is only logical to stick to some stocks only.
The primary list is prone to show many new stocks that may not sustain their moves. But helps to know in which sectors money is rotating now, so we can select good stocks from those sectors. From the secondary list I see Relaxo and Granules. Granules has an uptrend already and I traded it in July month. Relaxo has potential. It was a good stock before the pandemic. But due to lockdowns and covid crisis, it has fallen and range bound. Soon things could change for the better. Then it can get back into growth stocks list. Many stocks showing up in that list with small % rise may be just range bound as the market is not falling fast. I mentioned above two stocks considering a longer timeframe in mind.
For a long time I used to wonder why some stocks make rangebound pattern also called as "base" in chart patterns before they breakout and takeoff. These stocks are basically not falling as they get support because investors buy them on dips. Then they fall with market and again get support. Thus they end up in a range between two price levels. Eventually broader market stabilizes and these take-off. But many other stocks which had uptrend in broader bullish market, will fall with market (NIFTY excluded) and only recover partially when broader market stabilizes and gets into uptrend. Now this base pattern in charts and stock specific behavior in downtrends has become clear.
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