Stocks on Breakout

Stocks on Breakout after trading on 7th 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
AIRDECCAN	297.55	5.85%	Buy SL 276	298	Buy SL 274	Hold SL 240	274	290	280	223	72	64	44
ASIANPAINT	1212.40	6.27%	Hold SL 1078	1012	Hold SL 1078	Hold SL 980	1026	1165	1059	1031	96	83	27
ATLASCYCLE	275.55	16.78%	Buy SL 234	182	Hold SL 234	Hold SL 175	234	250	210	192	90	85	41
BAGFILMS	96.90	18.39%	Buy SL 81	97	Buy SL 81	Buy SL 73	73	94	84	86	79	65	14
BAJAJHIND	355.75	16.28%	Hold SL 288	214	Hold SL 266	Hold SL 220	267	308	277	233	90	80	45
BALRAMCHIN	122.95	5.27%	Hold SL 112	88	Hold SL 110	Hold SL 100	110	120	111	98	75	65	33
BANARISUG	1011.75	11.57%	Buy SL 893	1012	Buy SL 855	Hold SL 816	850	918	891	866	86	70	38
BFUTILITIE	2501.30	10.00%	Buy SL 2165	2501	Buy SL 2155	Hold SL 2155	2155	2390	2329	2253	78	61	12
BILT	189.50	7.58%	Buy SL 173	147	Hold SL 172	Hold SL 155	170	182	176	160	70	65	33
CLASSIC	566.75	9.19%	Hold SL 515	467	Hold SL 511	Buy SL 407	443	545	495	470	94	80	22
DCM	100.00	7.53%	Hold SL 87	97	Hold SL 83	Hold SL 70	78	96	87	71	73	67	38
DCMSRMCONS	100.45	11.74%	Buy SL 88	78	Hold SL 88	Hold SL 75	81	94	87	76	82	70	46
DHAMPURSUG	98.20	5.03%	Hold SL 89	83	Hold SL 85	Hold SL 65	85	95	88	72	82	71	40
DREDGECORP	1173.80	12.77%	Buy SL 1026	1174	Buy SL 1026	Hold SL 980	1036	1118	1076	1050	75	61	16
EIDPARRY	194.50	11.21%	Hold SL 172	151	Hold SL 171	Hold SL 156	170	179	172	161	93	81	43
ERACONS	865.35	6.83%	Buy SL 736	611	Hold SL 735	Hold SL 530	735	839	710	621	66	67	36
FORTIS	118.15	9.35%	Buy SL 105	84	Hold SL 105	Hold SL 84	100	114	101	87	83	78	60
GEOINFO	236.45	16.02%	Buy SL 200	236	Buy SL 200	Hold SL 190	200	235	222	202	65	59	18
GODREJIND	465.50	6.96%	Buy SL 410	466	Buy SL 410	Hold SL 362	410	454	428	321	76	70	51
HBSTOCK	124.35	5.92%	Hold SL 115	124	Buy SL 103	Hold SL 89	103	120	112	80	78	72	55
ICICIBANK	1362.55	5.93%	Hold SL 1232	1267	Hold SL 1205	Hold SL 1130	1205	1300	1235	1210	79	66	19
IILTD	101.50	4.10%	Hold SL 96	67	Hold SL 90	Hold SL 72	90	100	87	76	87	77	58
IMPEXFERRO	31.15	4.88%	Hold SL 28	28	Hold SL 26	Hold SL 23	24	30	26	23	88	77	31
ITC	231.30	5.45%	Hold SL 212	179	Hold SL 210	Hold SL 184	193	227	203	191	83	75	35
JAICORPLTD	1255.05	10.00%	Buy SL 1027	1108	Hold SL 1027	Hold SL 1000	1121	1240	1117	1088	76	67	23
JAYAGROGN	135.70	15.05%	Hold SL 114	92	Hold SL 112	Hold SL 97	110	125	113	99	82	74	39
JPHYDRO	141.35	3.10%	Hold SL 136	76	Hold SL 133	Hold SL 106	133	140	129	111	72	70	30
KAKATCEM	136.65	7.22%	Hold SL 124	84	Hold SL 119	Hold SL 93	101	135	113	97	92	85	57
KARURVYSYA	516.15	7.67%	Hold SL 470	347	Hold SL 425	Hold SL 346	387	508	414	368	93	87	58
KEI	110.15	9.60%	Hold SL 96	103	Hold SL 96	Hold SL 88	95	102	98	88	76	68	36
KOHINOOR	127.75	10.03%	Buy SL 104	55	Hold SL 104	Hold SL 65	104	119	86	68	86	84	67
KSOILS	122.60	11.91%	Hold SL 106	88	Hold SL 106	Hold SL 75	103	115	101	87	86	78	37
LAKSHVILAS	186.20	9.47%	Hold SL 164	105	Hold SL 146	Hold SL 128	139	180	149	132	94	84	56
LANABS	236.10	5.83%	Hold SL 200	217	Hold SL 200	Hold SL 198	198	234	209	202	87	80	40
MAHINDFORG	320.05	20.00%	Hold SL 260	320	Buy SL 254	Hold SL 233	254	279	262	228	89	77	40
MALUPAPER	62.45	13.86%	Hold SL 52	43	Hold SL 52	Hold SL 47	52	62	53	48	83	71	27
MANGTIMBER	39.40	6.78%	Hold SL 36	39	Buy SL 36	Hold SL 34	36	39	38	34	73	63	21
NAHARINVST	52.35	9.18%	Hold SL 47	0	Hold SL 46	Hold SL 32	46	52	44	0	77	74	63
NAHARSPING	119.05	4.71%	Hold SL 111	82	Hold SL 109	Hold SL 85	109	118	106	88	81	71	45
PEARLGLOBL	107.10	5.00%	Buy SL 98	70	Hold SL 97	Hold SL 85	97	104	98	82	75	68	39
PROVOGUE	1323.15	3.82%	Buy > 1392	991	Hold SL 1126	Hold SL 1000	1126	1295	1261	1086	70	66	28
RAJSREESUG	78.10	5.04%	Buy SL 72	51	Hold SL 71	Hold SL 53	71	77	70	58	80	78	47
RAMANEWS	46.40	12.48%	Hold SL 40	28	Hold SL 39	Hold SL 30	34	45	37	32	87	77	45
REMSONSIND	41.50	5.06%	Hold SL 40	29	Hold SL 35	Hold SL 29	35	40	33	30	87	74	35
RENUKA	1081.25	4.77%	Hold SL 1014	844	Hold SL 999	Hold SL 716	655	1054	957	828	84	75	47
SAKHTISUG	110.50	19.39%	Hold SL 90	75	Hold SL 88	Hold SL 70	81	93	87	77	92	81	50
SATHAISPAT	100.75	10.05%	Buy SL 88	55	Hold SL 79	Hold SL 51	79	100	72	57	86	81	47
SGL	43.00	11.40%	Buy SL 37	24	Hold SL 35	Hold SL 26	35	41	36	28	81	73	38
SIMBHSUGAR	56.90	5.08%	Hold SL 54	42	Hold SL 52	Hold SL 42	50	56	53	45	73	69	47
STARPAPER	56.35	9.52%	Hold SL 50	35	Hold SL 50	Hold SL 44	50	55	49	41	82	76	59
SUBROS	67.35	20.05%	Buy SL 55	52	Hold SL 55	Hold SL 45	55	61	53	48	83	76	29
TITAN	1670.90	8.83%	Hold SL 1505	1671	Buy SL 1505	Buy SL 1356	1450	1599	1516	1552	78	64	12
TNPL	139.10	7.04%	Hold SL 127	106	Hold SL 127	Hold SL 121	127	135	128	119	81	69	58
TVSMOTOR	77.45	9.16%	Buy SL 70	58	Hold SL 70	Hold SL 67	69	74	72	65	79	64	25
UPERGANGES	132.60	16.42%	Hold SL 113	113	Hold SL 111	Hold SL 86	111	120	108	92	87	77	45
WALCHANNAG	9418.70	10.00%	Hold SL 8221	8268	Hold SL 8210	Hold SL 7612	7905	9100	8293	8885	84	64	18
WSI	133.60	9.60%	Hold SL 116	114	Hold SL 116	Hold SL 98	116	129	114	102	82	73	35
WSTCSTPAPR	115.25	6.61%	Hold SL 105	96	Hold SL 96	Hold SL 81	96	115	100	94	86	77	23
ZICOM	259.35	5.00%	Buy SL 232	245	Hold SL 230	Hold SL 177	230	255	222	198	80	72	42
ZODJRDMKJ	51.10	20.09%	Buy SL 42	45	Hold SL 42	Hold SL 37	37	46	41	35	83	74	44

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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