Range breakout in Quess Corp can yield 16%

Quess Corp is a Technology Services, Staffing Services, Industrial Asset Management and Facility Management provider. The company is listed in July 2016.

Lets analyse Quess Corp on Technical Chart from short term trading perspective.
After its listing in July 16 the stock was trading in a broad range. This range is between 520-630.

We know breakouts can yield fast gains if traded with proper risk management in place. For those who are new to Technical Analysis- breakout is a large movement in price couple with high volumes taking stock to a new trading range.

Here are two different chart views of Quess Corp. Both the views are on Daily time frame.
The first chart below is closer picture.

Two things to observe here. (1) Today dated 29 Nov the stock has taken out an important resistance near 630. (2) The volumes are substantially higher as compared to the volumes in recent past.

The second chart below is a relatively larger picture.

On the larger picture here are the observations. (1) There are 3 failed attempts to breach the resistance near 630. First attempt on 5 Aug 16, second on 7 Oct 16 and then on 21 Oct 16. All the attempts failed to take the stock to new highs. However these repeated attempts weakened the resistance.
(2) The stock after its listing in July 16 has never traded below its listing price.

Based on above analysis our Premium Subscribers are recommended to buy Quess Corp. The detailed money management parameters like % of total trading capital to be utilised, Entry points and Risk Management parameters like stoploss multiple targets are updated to them.

Here are basic exit levels for all the readers.
Stoploss: 610
Target: 790


I had recommended a Buy in UJAAS to my premium subscribers on 28 Nov. The stock is now trading with a gain of 10%.

If you wish to regularly trade fast moving Mid and Small caps along with regular update/view on Nifty, subscribe to my Premium Services here.

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up. 

Swing call analysis of 3 Large Cap stocks to finish Nov-16 series on a positive note

I usually prefer to adhere to trades on 'Positional' time frame. However, sometimes market offers opportunity of some quick trades. I feel current market scenario may be one such opportunity. I am referring to an expected bounce in Nifty.

Lets take a moment to understand set up of Nifty and its chart. Its just 2 days for Nov series to expire. In these 2 days we can expect short unwinding in Nifty futures. Nifty trading near support on weekly chart. Today's hammerish candle pattern on daily chart suggesting bulls are in action. Nifty is trading in oversold zone. All these points make me believe that there is a case for a bounce in Nifty. No one should forget we are just talking about a possibility here. Major trend is still down and hence one should have strict risk management in place.

 Here are 3 Swing Calls. All are on long side. Since this article is written on 22nd evening I am considering the entry price as closing price of 22nd Nov. On all the charts below I have marked entry, stoploss and target lines. The levels given below are cash levels. If you wish to trade these stocks in Futures you will have to adjust the price accordingly.

Reliance Industries: 

If you look at the larger picture, you will find that Reliance is trading at lower end of trading range. This lower end is acting as support for Reliance. Stock has refused to fall to a large extent during recent pressure in broader markets. You can see some increase in volumes too. Buy Reliance Industries near 1001 with a stoploss of 980 and target of 1025.

HDFC Ltd:
One of the low Beta stocks from Nifty family, HDFC Limited is showing the signs of a bounce from current level. As you can see on the chart the stock is trading in oversold zone near a support. It has also confirmed a Piercing Candlestick pattern on daily chart. Stock trading away from its 50 dma. This makes a case of a possible bounce. One can buy HDFC Ltd near 1250 with a stoploss of 1224 for a target of 1280.

Hindalco:
On larger (monthly) time frame, Hindalco is seen on the verge of a breakout. For this breakout to sustain Hindalco can show a quick upward move on smaller time frame. A nice extended candle with piercing pattern tells that bulls are back in action. Maintain a stoploss at 158 and Buy Hinalco near 166.50 for a target of 178.5

 Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up.  

  

5 hot stocks & their levels to enter during correction- An update

You might have read my article ‘5 hot stocks & their levels to enter during correction’ which I had written on my blog in Sep 2016.

Many of my readers requested me for an update on the stocks which I had recommended in that article. Here is update on all the 5 stocks-

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1.     Ajanta Pharma:

The stock has corrected almost 8.5% from the levels when I has published my last article. Currently the stock is trading near 1876. My recommended levels to buy were 1700-1650-1565. There is still some more wait for these levels to come. We can best expect that we shall get those prices, at-least the first one at 1700. If the stock moves down to 1720 kind of level, I would recommend you to start accumulating Ajanta Pharma.

2.     Asian Paints:

The stock has corrected by almost 12% since the time of last article. Now trading near 1043. The stock has reached its first support level, precisely at 1025, as recommended in earlier article. One can start accumulating at current levels in small quantity. Further levels, which I would be looking forward to are 970 and 920.

3.     Pidilite Industries:

Pidilite has registered a low of 648 in Sep. Hope to get the same or even better levels to enter again. I am looking forward to 625. Let’s see.

4.     Tata Motors:

The earlier levels which I had mentioned were 470 and 425. Stock is currently trading at 512. We still have some wait here. In case of Tata Motors, now it seems unlikely that the stock will correct to 425, unless there is some negative news. A level near 470 is a level which I would be looking forward to.

5.     Ultratech Cement:

The levels to enter are supposed to be around 3300. Good stocks corrects very little as usually the demand is high. So as is the case with Ultratech Cement. So far it has corrected only 6% from its top. However its not a good idea to enter at dearer price. Patience is the key here. You never know, you will get a discounted price near 3300.

Here is my philosophy of entering into a stock near support. I feel more comfortable when stock start showing (some) gains immediately after I enter the stock. When we take an entry near the support, it is unlikely that the stock will move further down- at-least it will not move down to large extent. In similar context you may wish to read Buying 'Breakout' Vs buying 'Near Support'

I believe in making keeping the things simple. If you wish to trade/invest in deliver based stocks over medium term- Prime Cash can be an ideal solution for you.

Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up.