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.
| company symbol | % rise today | today's close price |
| 63MOONS | 5 | 85.1 |
| ADVANIHOTR | 5.1 | 47.3 |
| BSLNIFTY | 0.4 | 126 |
| CANBK | 8.8 | 114.8 |
| CANBK-1M | 9.3 | 115.3 |
| DAAWAT | 3.7 | 59.4 |
| FEDERALBNK | 7.8 | 60.5 |
| FEDERALBNK-1M | 8.7 | 60.8 |
| IBULHSGFIN-1M | 2.7 | 225.2 |
| IDEA | 14.1 | 10.1 |
| IDEA-1M | 14.6 | 10.2 |
| IMPAL | 1.3 | 553.8 |
| INDTERRAIN | 11.5 | 35.8 |
| NILAINFRA | 8.7 | 5.6 |
| ONEPOINT | 6.4 | 14.2 |
| PRAENG | 9.8 | 6.8 |
| SPARC | 4.3 | 190.2 |
| SRTRANSFIN-1M | 7.4 | 775.5 |
| SURANASOL | 4.9 | 7.5 |
| UCALFUEL | 11 | 142 |
Same table as a picture.
I had closed the cineline after 10 in the morning as it tried to rise but failed. Closed with 14% from that stock in two weeks. I could have added more shares along the way but Zerodha was asking about some TOPT saying it got into ASM list. To avoid future hassles of logging in by doing any changes to my account, i avoided. Removed it from my watchlist. It's ok. We can find many stocks day after day. There is no dearth of opportunities in a stable market.
Yesterday I mentioned about COFORGE (NIITTECH renamed) to rise soon, after seeing Zeelearn in yesterday's list. It was up 3.5% afternoon. I made a point in the night to make an entry into it. But forgot it in the morning as my activity is at eod time only. But for the stocks found in these lists in the night, I need to make a note somewhere in a book or a sticky pad to help remember to buy the first thing in the morning. It is not the first time it happened in few days. But as COFORGE is my long term stock too and that's why I had to look into ways to overcome this problem.
It mainly happens because of many stocks in my watchlists which I add and do not remove afterwards. Also for short term trading we see new stocks and old stocks regularly so confusion or forgetting happens. Hence additional notes are required to help act on time. After missing 4% move, I didn't buy it. Better luck next time. It is hard to manage a position when the opportunity point is missed.
INDTERRAIN showed up today. It came two weeks ago and I placed in my watchlist. Not being familiar with this stock, I didn't buy it. Yesterday it rose 4% after <10 days of pullback. I felt the urge to buy it but that 4% made me reluctant. Missed 11% gain today. Nevermind, it shows the validity of this list for 5-25% gains in a 2 week timeframe.
Today IBULHSGFIN showed up (its 1-Month future). Couple of days ago I bought LICHSGFIN as it showed up in Tuesday's list and went up and came to same level on Wednesday. That is a kind of bargain price. Both days it went up and showing 5.5% gain now. I didn't realize then it has options too. The inspiration for this watch list is for potential options trading opportunities. Options make good candidates as they by default embed a stop loss by not falling much when stock falls and rising a lot as stock rises further. That is provided you buy at the money option (not ITM or OTM options). And with a fraction of intended capital, as the whole option price can turn to zero in the worst case.
The big rise in IDEA driven by the AGR dues verdict news correlates to Bhartiairtel and infratel rise too. But it seems IDEA is best in this sector for big % potential. But it is better to avoid for high volatile moves that happen with news. News based trading is something for future study and can drain considerable amount of one's time to wonder if it is worth one's time investment. News based trading is good for full time traders. For working professionals, our way of acting only once a day on the lists prepared in the night, is best suited.
Interesting to note is the huge run up in the banks this week. That too after seeing four banks (not one or two or three) in the list of last Friday. BANKNIFTY itself went up a lot this week and today too, rising more than 3.5%. HDFCBANK didn't rise today which used to be long term bank stock. But Axisbank, icicibank, SBIN and particularly indusindbank had a field run rising expotentially day by day. This list has the advantage to help do some cross-reading of the market. Because I am only picking big moves for the lists. There has to be some significance to that.
There are more things to learn systematically. Seeing bank stock's rise and some differences across stocks this week, I am thinking of posting another kind of market statistic. I traded CIPLA options in the prior week and made profits for two consecutive days and avoided after that seeing no strength and having risen a lot already. At that time sunpharma also appeared to rise and became relatively weak compared to CIPLA. But this week sunpharma is the relative gainer. I didn't notice that because i was observing cipla only, having traded it. SBIN is not the stock one would expect to rise much in a trend. After quarterly results it got into trend. One could just think of it as coming into this list and buy in the middle of 10 days time from the last peak. That would have been 10% on a Nifty stock, very huge to expect as it is a huge potential gain for option trading.
Can such potential NIFTY stock moves be planned from another market statistic? I will do some study and start another statistic of a weekly once type, if there is some pattern in it.
If you liked this post, you can check any of the Reaction boxes below. If you want to post any questions or share thoughts, feel free to add comments below.
Read the disclaimer on the right side of this blog (in desktop mode) before making any investment/trading decisions.
Continue reading...
