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Tuesday 12 March 2013

Todays Trades – 12 March 4 winning trades

Dear Readers

Sharing my trades and lessons from today.

As per my pre-market calls, I was mostly looking for selling opportunities in Banking, Auto and Metal stocks. Please read my pre-market calls here. Nifty was below my level of 5920 from market opening. Though market attempted to move above days high after 11 AM, there was heavy selling and the support of 5880 was broken convincingly.

Most of the stocks opened below my sell levels and initially there were no opportunties to trade. But overall Nifty weakness and stocks moving below days low coupled with observing divergences helped me to make the below trades.

1. Maruti – Maruti was well below my sell levels, but was consolidating at the days low and finally crossed the days low along with weakness in Nifty. Please click on the chart for more details.

2. BHEL – BHEL was crossing days low and a crucial support, so I decided to short and alerted my readers in the blog. Please click the chart for more details.

3. ICICI Bank – ICICI was much below my sell level. But I could see ICICI developing a hidden divergence during the second half of the day, hence I decided to short. The stock crossing day’s low confirmed my decision and it gave me several profit points.

From the charts, I could also sense that the market is expecting negative news probably from the RBI meet later during the month. Axis Bank was falling in parallel and even SBI started to move down.

Important concept of Hidden Divergence.

When price makes lower high , but indicator makes higher high – It is called Hidden Divergence. If you see this any day, blindly short. (Opposite is Price making higher low , but indicator making lower low, go long in that case)
This is what you can see in todays ICICI Chart. Between points A-B-C-D, the price was falling down. But MACD and RSI were continuously moving up. From A to D both these indicators were moving up. Please click on the chart and go through my comments.
4. Tata Steel – Was relatively strong during the da
y and made several attempts to move up during the first half of the day. However this was faced with selling and the stock moved below my sell levels of 356. I entered into sell position here several points profit. Please see the chart .

Other stocks from  my watchlist which I did not trade.
L&T – My sell level was 1515. Stock could not cross this, days high was 1512. There was a trading opportunity to short on rise to this level.
SBI – There was a trading opportunity to sell below days low.
Reliance – Attempted to cross 855, but was faced with selling exactly at this point.

Hope my readers have made profits today. If you have any questions on these trades, please feel free to write here.

1 comments:

Good Evening Sir,
As I had made up my mind yesterday & getting green signal from you in the morning,I waited till 11.35 am for Tata Steel to made new day high & so also Nifty stuck at a point,could not able to sustain level.I shorted it to my hearts content above 356 level & gathered 4 points to 352.But,to my surprise it fell to 350 level with good vols.It tried to recover but vol was very less than.
And Reliance was a non-starter.
Thanks again for your guidance & your desire to help me out.Hope, I shall get 3 more points tomorrow by shorting.I shall buy for 3 points if it crosses 355 with good vol..think may reach to 357-358 only to complete the saga of the Budget day.Waiting to your morning post.
That is where I shall require realtime charts during trading to get some hint about cross overs &c.Your charts are very much supportive & educative,no doubt.I shall try the google site & will be in touch with you always. Good Night.

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