Stocks on Breakdown

Stocks on breakdown after trading on 4th March 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
ABIRLANUVO	1601.60	-3.59%				Buy > 1977	1635	1775	1751	1945	19	33	38
ADHUNIK	172.00	-4.74%	Exit	----	Exit	Hold SL 143	176	191	173	190	37	46	20
AKRUTI	996.90	-7.99%	Buy > 1100	----	Buy > 1162	Hold SL 925	1035	1240	1144	1173	13	31	12
ALBK	100.35	-3.09%				Buy > 121	101	112	109	117	25	38	29
ALEMBICLTD	52.00	-3.53%				Buy > 68	53	59	57	71	25	31	27
AMAR	29.85	-3.40%				Buy > 35	30	33	31	38	29	39	13
AMTEKAUTO	285.45	-4.05%				Buy > 341	286	330	308	355	24	32	31
ANKURDRUGS	236.85	-4.88%				Buy > 301	240	271	262	302	25	37	10
ARIHANT	351.10	-11.78%				Buy > 478	356	410	404	501	25	33	36
ASHAPURMIN	245.60	-3.59%				Buy > 307	251	286	263	313	28	38	39
ASIANHOTEL	584.95	-4.86%				Buy > 698	589	675	622	675	33	41	14
AVAYAGCL	196.95	-3.31%				Buy > 240	203	225	210	251	21	33	27
AVTNPL	91.20	-5.00%				Buy > 108	92	100	97	120	26	34	29
AXISBANK	910.90	-3.04%	Buy > 998	----	Buy > 1040	Hold SL 865	938	1040	994	1043	26	38	22
BANARISUG	940.00	-3.70%	Buy > 1000	----	Buy > 1020	Hold SL 787	951	1022	941	925	27	50	17
BANCOINDIA	34.65	-4.28%				Buy > 40	35	38	37	40	23	39	14
BANKINDIA	309.75	-6.25%				Exit	327	365	355	376	20	34	35
BANKRAJAS	141.10	-12.47%	Buy > 172	----	Exit	Hold SL 123	156	195	150	153	21	42	26
BANSWRAS	40.80	-7.06%				Buy > 57	43	48	45	55	20	34	21
BBL	2586.50	-5.54%				Buy > 3120	2701	3120	2853	3177	21	33	33
BHUSANSTL	928.65	-5.85%				Buy > 1158	978	1097	1008	1250	23	34	40
BONGAIREFN	58.20	-3.16%				Buy > 74	60	65	63	76	25	37	29
BSCFAUG08A	127.00	-4.15%				Buy > 127	129	135	133	137	19	39	50
CARBORUNIV	135.10	-4.86%				Buy > 157	136	157	146	154	21	38	23
CCCL	809.95	-6.82%				Exit	836	920	916	1010	12	25	18
CENTBOP	44.55	-4.19%				Buy > 62	46	62	50	57	22	35	22
CESC	470.90	-6.20%				Buy > 592	490	592	520	561	26	39	31
CINEMAX	98.25	-4.61%				Buy > 116	102	111	104	124	27	36	37
CUBEXTUB	61.15	-4.90%				Buy > 78	64	72	67	0	24	37
DCB	100.45	-5.06%				Buy > 120	105	120	108	123	26	38	13
DECCANCE	280.70	-7.36%				Buy > 340	300	330	305	343	17	36	15
DHANUS	215.15	-4.99%	Exit	169	Hold SL 215	Hold SL 133	216	245	184	231	56	55	29
DWARKESH	70.05	-4.89%				Buy > 90	71	86	80	94	14	31	16
ECLERX	293.00	-8.31%				Buy > 358	311	340	322	0	20	35	23
EDL	158.00	-6.23%				Buy > 218	163	195	183	248	13	27	38
ELECON	209.25	-6.63%				Buy > 260	223	260	229	265	22	35	38
ELECTCAST	52.00	-4.94%				Buy > 68	53	64	59	72	15	30	21
ELGIEQUIP	54.75	-4.62%				Buy > 75	56	64	61	68	15	32	13
ENERGYDEV	139.95	-4.73%				Buy > 181	142	159	154	202	23	33	28
EVERONN	739.95	-5.00%				Buy > 884	741	854	768	911	33	42	12
FACT	34.15	-5.01%				Buy > 41	35	41	36	40	27	42	13
FCSSOFT	78.10	-4.81%				Buy > 95	80	93	84	99	29	39	27
FDC	30.60	-3.92%				Buy > 37	31	33	32	37	25	37	19
FINCABLES	78.95	-3.13%				Buy > 116	80	90	85	100	29	35	18
FMGOETZE	83.25	-5.07%				Buy > 109	85	105	94	121	15	29	23
FOSECOIND	403.50	-3.27%				Buy > 455	410	455	422	441	30	41	18
FOURSOFT	35.55	-4.69%				Buy > 44	36	41	39	44	18	35	23
FSL	43.75	-8.09%				Buy > 57	46	57	51	60	14	29	25
GALLANTT	28.45	-5.01%				Buy > 37	30	33	32	36	19	35	18
GANDHITUBE	190.00	-4.86%				Buy > 225	194	211	200	218	37	43	9
GATI	114.95	-4.25%				Buy > 137	118	134	121	141	23	38	17
GEMINI	160.50	-8.26%				Buy > 218	174	210	182	217	19	35	16
GENESYS	55.00	-3.42%				Buy > 76	57	65	62	71	24	35	25
GITANJALI	272.10	-4.68%				Buy > 319	285	311	294	345	15	33	46
GLODYNE	408.35	-4.99%	Buy > 444	----	Exit	Hold SL 365	417	479	427	400	28	48	21
GMDCLTD	380.60	-4.95%				Buy > 452	397	440	408	433	25	41	11
GMRINDS	99.85	-4.59%				Buy > 133	102	112	108	127	31	36	23
GNFC	164.60	-4.80%				Buy > 214	172	198	181	194	23	38	17
GREENPLY	311.45	-6.57%	Exit	----	Exit	Hold SL 262	313	367	316	335	36	46	14
GTNIND	21.40	-4.04%				Buy > 27	21	24	24	29	21	31	36
GUJSIDHCEM	21.95	-4.57%				Buy > 28	22	25	24	29	23	34	24
GULFOILCOR	150.25	-4.57%				Buy > 214	157	174	170	230	23	31	32
HBSTOCK	58.85	-4.93%				Buy > 86	62	70	69	91	16	30	29
HDIL	729.20	-9.54%				Buy > 1028	800	878	842	999	17	34	33
HILTON	31.35	-4.71%				Buy > 43	32	39	35	43	14	34	10
HINDOILEXP	99.65	-6.21%				Buy > 118	105	115	106	122	18	39	23
HINDSANIT	54.85	-5.10%				Buy > 73	58	67	61	73	15	31	33
HINDUJAVEN	495.60	-8.01%	Exit	----	Buy > 595	Hold SL 452	505	595	538	631	21	36	29
HONDAPOWER	219.85	-3.51%	Buy > 233	----	Buy > 248	Hold SL 207	220	248	231	249	31	41	19
IBREALEST	552.65	-7.13%				Buy > 696	561	672	618	667	25	38	21
ICRA	708.45	-4.36%				Buy > 870	712	800	774	853	16	32	25
IFBIND	47.50	-5.00%				Buy > 68	50	57	55	65	22	35	19
IFCI	58.15	-5.14%				Buy > 72	61	69	63	71	31	41	25
IGARASHI	66.30	-5.49%				Buy > 82	69	74	72	85	19	36	35
INDIANHUME	685.50	-4.94%				Buy > 974	705	787	780	956	21	31	24
INDSWFTLAB	55.25	-5.47%				Buy > 68	57	61	58	67	27	40	15
INDSWFTLTD	26.55	-4.84%				Buy > 34	27	29	28	33	26	37	15
INDUSINDBK	87.25	-6.13%				Buy > 114	91	102	97	107	23	38	18
ITDCEM	387.60	-3.40%				Buy > 500	398	439	424	510	25	34	26
ITI	38.85	-4.78%				Buy > 52	41	46	43	55	25	35	18
JAGRAN	105.15	-3.40%				Buy > 142	108	119	113	132	31	38	36
JAIBALAJI	333.50	-5.00%				Buy > 465	342	383	370	445	25	35	24
JAYNECOIND	40.75	-5.01%				Buy > 56	43	52	47	57	12	32	16
JBCHEPHARM	53.75	-5.62%				Buy > 62	55	62	56	67	30	39	16
JBMA	42.35	-6.92%				Buy > 57	43	51	46	53	22	37	21
JPASSOCIAT	225.10	-7.75%				Buy > 376	242	280	277	358	19	31	39
JSTAINLESS	142.50	-4.23%				Buy > 170	149	170	155	179	27	38	27
JYOTHYLAB	700.75	-5.30%				Buy > 820	703	748	722	789	35	42	18
KALINDEE	393.60	-4.96%	Buy > 420	----	Buy > 486	Hold SL 375	413	504	426	449	20	39	17
KAMATHOTEL	194.95	-5.32%				Buy > 238	205	225	209	231	30	38	15
KIL	30.25	-4.72%				Buy > 41	32	38	34	40	20	33	13
KOPRAN	22.60	-4.84%				Buy > 29	23	26	25	31	17	29	35
KTKBANK	244.25	-4.22%	Buy > 261	----	Exit	Hold SL 240	250	275	257	253	25	42	11
LANABS	185.40	-4.70%				Buy > 208	190	208	197	202	5	30	17
LGBROS	22.30	-4.09%				Buy > 26	23	26	23	28	23	34	26
LOGIXMICRO	196.60	-3.49%				Buy > 266	202	260	218	267	32	38	39
LUMAXAUTO	48.25	-4.83%				Buy > 59	49	54	51	61	31	35	15
LUMAXTECH	57.70	-6.41%				Buy > 72	58	65	64	73	19	35	23
LYKALABS	47.25	-4.93%				Buy > 69	48	54	55	69	23	30	35
MADHAV	50.25	-5.90%				Buy > 75	50	65	58	78	21	29	23
MAHABANK	51.70	-3.72%				Buy > 78	52	77	64	75	7	20	47
MALCO	586.30	-7.19%				Buy > 724	619	724	635	717	22	36	21
MANALU	43.70	-3.74%				Buy > 52	45	49	47	56	20	35	14
MANGCHEFER	27.40	-4.86%				Buy > 34	28	33	30	35	27	37	18
MAX	187.00	-4.10%				Buy > 232	192	221	201	224	22	34	15
MAYTASINFR	630.45	-6.62%				Buy > 775	651	715	694	769	15	30	26
MCDHOLDING	209.30	-4.30%				Buy > 282	211	244	234	291	24	30	38
MORARJETEX	37.05	-5.00%				Buy > 52	39	44	43	52	22	32	32
MSKPROJ	104.50	-4.96%				Buy > 136	108	123	116	140	24	34	22
NAGREEKCAP	64.25	-4.81%				Buy > 90	67	76	74	102	19	26	42
NAHARINVST	22.80	-4.20%				Buy > 29	24	26	25	34	26	32	33
NELCAST	112.35	-3.31%				Buy > 137	115	124	121	141	11	29	25
NFL	60.30	-4.96%				Buy > 73	63	73	65	73	26	40	18
NITCO	237.10	-6.69%				Buy > 270	241	267	252	264	26	37	27
NUCHEM	22.70	-4.82%				Buy > 32	23	27	25	26	25	41	17
OILCOUNTUB	72.05	-4.95%				Buy > 103	73	84	83	93	16	33	13
ORIENTABRA	24.45	-4.86%				Buy > 29	25	28	26	29	25	39	16
ORIENTBANK	225.95	-5.10%				Buy > 288	236	288	261	273	12	32	29
ORIENTPPR	43.75	-7.41%				Buy > 61	47	53	51	60	16	25	42
PATINTLOG	64.55	-4.93%				Buy > 85	67	83	75	0	12	32	25
PENINLAND	81.50	-7.81%				Buy > 101	88	101	90	111	20	37	15
PIDILITIND	148.85	-6.06%				Buy > 208	152	188	162	175	19	34	16
PITTILAM	52.45	-4.11%				Buy > 66	54	66	57	65	14	35	27
PONNIERODE	41.45	-4.71%	Exit	----	Exit	Hold SL 35	42	46	41	47	38	46	21
PRATIBHA	312.05	-5.71%				Buy > 389	320	364	333	372	32	40	15
PVR	253.85	-3.99%				Buy > 294	258	294	261	286	29	43	22
QUINTEGRA	99.00	-4.99%				Buy > 167	104	115	123	161	13	24	41
RCF	76.35	-4.98%				Buy > 101	78	93	84	101	27	37	13
REPRO	99.35	-3.26%				Buy > 148	101	118	113	127	12	35	11
RKFORGE	241.00	-3.98%				Buy > 284	248	274	265	251	23	43	16
RPGCABLES	38.00	-4.76%				Buy > 48	39	43	41	48	23	35	17
RPGLS	41.40	-7.49%				Buy > 85	43	59	58	83	7	20	57
RUBYMILLS	967.10	-5.00%				Buy > 1465	990	1150	1137	1400	26	31	19
SADBHAV	1223.75	-5.79%	Exit	----	Exit	Hold SL 970	1245	1430	1239	1304	34	46	21
SANGHVIMOV	239.85	-3.15%	Exit	----	Exit	Hold SL 231	240	283	251	276	38	42	15
SASKEN	118.15	-4.29%				Buy > 154	120	139	129	203	17	26	41
SATHAISPAT	55.40	-4.97%				Buy > 67	58	67	60	70	21	39	9
SB&TINTL	22.40	-4.88%				Buy > 29	23	26	24	33	27	34	31
SEAMECLTD	150.15	-8.64%				Buy > 220	159	177	174	215	20	30	32
SHANTIGEAR	64.30	-5.58%				Buy > 72	66	73	68	79	29	38	32
SHASUNCHEM	55.80	-4.21%				Buy > 68	56	68	59	68	31	40	20
SHIVTEX	27.85	-4.79%				Buy > 34	29	32	31	36	22	34	15
SILINV	103.75	-4.99%				Buy > 147	106	115	120	159	23	29	37
SINTEX	429.30	-4.61%				Buy > 488	449	488	454	496	21	35	16
SOMATEX	27.30	-3.36%				Buy > 35	28	31	30	34	15	33	14
SONASTEER	47.20	-3.18%				Buy > 56	48	52	50	57	27	32	20
SOUTHBANK	168.45	-4.45%				Buy > 214	174	195	187	205	14	33	36
SPARC	91.75	-3.27%				Buy > 103	93	103	95	115	32	39	20
SPIC	24.60	-4.84%				Buy > 32	26	29	28	31	16	33	16
STERTOOLS	67.85	-6.35%				Buy > 82	70	79	73	80	26	37	23
SUBEX	243.35	-5.73%				Buy > 303	248	299	275	301	16	33	15
SUNDRMBRAK	277.00	-3.87%				Buy > 350	286	308	300	329	26	33	13
SUPREMEIND	235.55	-5.89%				Buy > 294	242	272	262	296	19	35	33
SURYALAXMI	35.40	-3.01%				Buy > 42	36	41	38	45	29	37	24
TAJGVK	124.80	-3.29%				Buy > 150	129	138	134	149	19	33	29
TATAINVEST	546.35	-3.14%				Buy > 649	561	596	580	630	17	33	14
TATAPOWER	1234.85	-5.46%				Buy > 1468	1250	1429	1321	1378	21	40	12
TCI	95.40	-5.54%				Buy > 120	100	114	107	129	19	31	29
THEMISMED	195.00	-4.99%				Buy > 253	204	221	219	236	24	39	16
THIRUSUGAR	94.90	-5.01%				Buy > 108	96	103	98	114	37	42	25
TIDEWATER	3170.00	-5.00%				Buy > 4049	3255	3728	3445	3717	27	38	17
TNPL	100.65	-4.33%				Buy > 116	103	111	106	115	25	37	19
TTKPRESTIG	127.75	-5.23%				Buy > 165	128	148	138	159	10	32	14
UCOBANK	44.30	-5.44%				Buy > 62	47	51	51	61	16	30	20
USHAMART	87.55	-4.99%				Buy > 107	88	107	94	109	29	39	19
VAIBHAVGEM	89.95	-8.87%				Buy > 125	99	129	105	134	12	28	60
VENKEYS	139.25	-3.90%				Buy > 166	141	153	149	174	21	35	27
VIJAYABANK	58.85	-5.08%				Buy > 72	60	72	66	74	14	34	22
VIMTALABS	102.90	-4.99%				Buy > 134	105	114	112	132	24	36	23
VINDHYATEL	130.05	-5.76%				Buy > 170	135	152	147	179	26	35	31
VIPIND	111.40	-4.70%				Buy > 126	112	124	118	131	19	37	20
WEBELSOLAR	363.00	-4.57%				Buy > 479	368	420	398	521	25	32	30
WHEELS	266.00	-5.34%				Buy > 320	276	305	286	295	22	40	11
WSI	87.35	-4.85%				Buy > 108	87	100	93	106	31	39	14
YESBANK	207.40	-9.27%				Buy > 258	228	250	238	244	15	32	18
ZICOM	151.85	-4.97%				Buy > 183	152	183	158	194	31	39	23

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)

----- With due apologies and full credits to vfmdirect.com