Stocks on Breakout

Stocks on Breakout after trading on 4th January 2008 are as follows :

NSE Code	Close	% Ch	2 day Swing	5 day SWING		20 day Swing	Previous		Mov. Av.		RSI		ADX
				Entry	Action		Sup	Res	20d	50d	5d	14d
ABAN	5389.20	5.77%	Hold SL 4981	4956	Hold SL 4819	Hold SL 4556	4621	5100	4899	4860	89	69	17
AURIONPRO	561.80	10.54%	Hold SL 500	435	Hold SL 490	Hold SL 431	490	545	494	447	85	73	50
BBTC	867.35	5.00%	Hold SL 800	806	Hold SL 800	Hold SL 762	762	860	814	779	79	65	20
BLUESTINFO	115.65	10.78%	Buy SL 102	116	Buy SL 102	Hold SL 86	102	114	101	91	80	74	37
CIMCOBIRLA	50.70	5.08%	Buy SL 46	38	Hold SL 45	Hold SL 30	45	49	44	36	75	68	45
EIMCOELECO	684.75	3.75%	Buy SL 641	572	Hold SL 635	Hold SL 635	635	669	668	612	69	61	29
ENERGYDEV	283.35	5.00%				Buy > 284	245	272	262	0	82	62	25
GSPL	110.00	5.57%	Hold SL 98	78	Hold SL 96	Hold SL 79	94	104	94	79	88	76	41
JISLJALEQS	661.55	5.12%	Buy SL 625	662	Buy SL 618	Hold SL 555	618	654	642	613	67	57	21
KEYCORPSER	213.50	3.14%	Hold SL 207	170	Hold SL 181	Buy SL 147	165	210	185	171	88	67	26
KKCL	493.95	20.01%	Hold SL 389	424	Hold SL 389	Hold SL 365	389	430	410	391	86	73	23
LOKESHMACH	144.00	11.98%	Hold SL 128	124	Hold SL 127	Hold SL 98	127	136	121	112	93	80	25
LT	4248.85	4.78%	Buy SL 4040	4249	Buy SL 4040	Hold SL 3931	3931	4246	4158	4184	67	57	12
MANUGRAPH	182.00	7.66%	Hold SL 165	182	Buy SL 163	Hold SL 153	164	182	169	161	80	66	13
MUKTAARTS	234.65	5.01%	Hold SL 217	201	Hold SL 214	Hold SL 183	208	225	212	160	76	72	43
NAGARCONST	366.35	3.17%	Hold SL 352	353	Hold SL 349	Hold SL 303	341	365	342	320	68	63	20
NBVENTURES	341.50	4.13%	Hold SL 321	278	Hold SL 285	Hold SL 231	276	340	275	272	88	76	23
NDTV	502.50	6.76%	Hold SL 461	377	Hold SL 433	Hold SL 325	433	482	436	389	90	78	12
ORCHIDCHEM	309.60	5.70%	Hold SL 283	296	Hold SL 283	Hold SL 236	283	306	266	248	81	72	34
PANACEABIO	411.55	5.24%	Hold SL 390	400	Hold SL 348	Hold SL 338	348	405	378	369	79	68	35
PRAJIND	260.20	6.01%	Hold SL 241	211	Hold SL 240	Hold SL 201	236	260	239	215	74	65	32
PRECOT	177.00	7.73%	Buy SL 164	153	Hold SL 158	Hold SL 136	158	175	155	140	89	75	41
PUNJABTRAC	353.75	29.98%	Hold SL 270	206	Hold SL 266	Hold SL 223	266	285	269	229	94	85	54
RAMCOIND	1451.85	10.18%	Buy SL 1204	1136	Hold SL 1204	Hold SL 1100	1204	1381	1296	1174	86	73	29
RCOM	760.65	3.81%	Buy SL 728	761	Buy SL 722	Hold SL 698	722	754	736	727	73	61	13
RELCAPITAL	2762.60	3.80%	Hold SL 2575	2154	Hold SL 2556	Hold SL 2320	2511	2690	2511	2298	83	70	18
RELIANCE	2993.00	3.08%	Hold SL 2830	2896	Hold SL 2811	Hold SL 2652	2811	2930	2845	2807	80	63	12
SASKEN	350.05	3.02%	Hold SL 337	327	Hold SL 330	Hold SL 276	325	349	319	295	85	70	20
SHOPERSTOP	577.25	6.10%	Hold SL 511	525	Hold SL 511	Hold SL 461	511	575	516	515	80	70	19
SHREYAS	149.90	14.21%	Hold SL 130	122	Hold SL 127	Hold SL 102	127	144	117	101	88	80	44
SIEMENS	1958.35	3.06%	Buy SL 1881	1958	Buy SL 1881	Hold SL 1835	1866	1935	1913	1890	76	60	15
SUBEX	359.85	4.41%	Hold SL 340	----	Buy > 363	Hold SL 302	319	355	339	318	74	63	29
SUNTV	421.15	5.05%	Buy SL 395	344	Hold SL 395	Hold SL 362	376	418	398	354	72	66	33
SUPERSPIN	32.60	19.41%	Hold SL 26	20	Hold SL 24	Hold SL 17	17	28	23	19	96	84	42
TECHNOELEC	336.25	10.01%	Hold SL 302	178	Hold SL 275	Hold SL 205	240	330	269	215	77	71	34
TIIL	93.10	6.52%	Hold SL 87	65	Hold SL 84	Hold SL 75	85	93	82	71	82	75	48
TIMESGTY	71.85	5.04%	Hold SL 68	59	Hold SL 58	Hold SL 49	61	69	59	40	86	78	51
VALECHAENG	345.70	12.13%	Hold SL 294	231	Hold SL 286	Hold SL 255	286	313	281	269	96	86	26
VESUVIUS	306.60	6.81%	Hold SL 266	237	Hold SL 266	Hold SL 237	266	295	261	246	94	79	39
WEBELSOLAR	705.85	5.67%	Hold SL 627	605	Hold SL 600	Hold SL 480	600	690	554	504	89	78	56
ZENITHINFO	460.40	5.50%	Hold SL 415	384	Hold SL 376	Hold SL 301	321	459	386	362	91	72	18

Importance of charts

No algorithm or trading system can substitute visual inspection of chatrs. Algorithms, can at best, only make filtering easier. Since there is always a risk of loss in stock markets, any trading decision must be taken only after detailed study of charts.

Buy and Sell signals

These are generated using custom designed swing trading algorithms. As one can never know with certainity the extent of gains or losses, the concept of trailing stoplosses is used.

If a stock is in a downtrend, a buy signal is generated if the stock closes above it's "N" days highest high. The trailing stoploss is the "N" days lowest low and will change everyday till an exit is given. Here "N" refers to 2 or 5 or 20 days. Obviously a 2 day swing will generate more signals than a 20 day swing. For best results, use the 2 day or 5 day swing to buy only if the stock is trading above the 20 day swing low.

The methodology is similar moving averages / crossovers. The advantage is reduced whipsaws and more efficient stoplosses.

Above signals work best with trending stocks and are useless with rangebound stocks.

Rangebound trades, whipsaws and false signals

All technical indicators will fail in rangebound stocks / markets and will generate whipsaws and false signals.

Whenever a swing trade results in a loss, it means the stock is rangebound. At this point, one should study the chart and identify areas of support and resistance. Only a break above these levels will create a new trend.

Support and Resistance levels / targets

This is nothing but a "peak" and "trough" based on 5% change. These levels form the basis for calculation of targets.

A break above a "peak" gives a resistance break. Similarly a break below a "trough" generates a support break.

Targets are calculated using Fibonacci retracements.

UP targets = Support + X *(Resistance-Support)

DOWN targets = Resistance - X *(Resistance-Support)

Where X equals 0.382 or 0.5 or 0.618 or 1.618 or 2.618

Depending on formation of support and resistance, targets are automatically calculated. Because of the methodology adopted, it is normal for the stock to trade significantly higher than the target. Once the stock corrects, the new "resistance" is defined and targets automatically calculated.

Oversold and overbought stocks

Interpretation of this is difficult and shd be done in the context of the prevailing trend.

Overbought means great strength. It does NOT mean stock will correct immediately. It is normal for a stock to remain overbought for considerable periods of time.

Oversold means great weakness. It does NOT mean stock will rally immediately. It is normal for a stock to remain oversold for considerable periods of time.

In an uptrend, oversold stocks present a good buying opportunity near supports (buy on declines). In a downtrend, one shd exit overbought stocks (sell on rallies).

Intraday support and resistance levels

This is for daytraders only and can be unreliable due to freak trades.

• Pivot point = P = (H + L + C)/3
• First area of resistance = R1 = 2P - L
• First area of support = S1 = 2P - H
• Second area of resistance = R2 = P + (R1-S1)
• Second area of support = S2 = P - (R1-S1)

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