As a technical analyst and believe that there is everything in price and volume.
Hope you will also enjoy with me while trading the trades posted by me here. I will try my level best to find best trades with proper setups.
Thanks for reading my introduction.
I will try to post my trade setups here but it doesn't mean that I will take them blindly on the day it occurs. Many times I don't trade them. It basically depends on many criteria's like volume behavior on the trade setup day, price behavior near resistance or support or entry level, overall market behavior, sector's behavior etc. Sometimes I postpone the trade and sometimes I cancel it also. On weekends I try to locate the trades for the coming week and then trade them on weekdays.
Its now the time for posting my trade setup for DLF.
Yesterday's (i.e. on 27.09.2013) closing price of DLF = 132.85
Low of DLF on 4th Feb 2009 was 124.05
DLF touched those lows FOUR TIMES on 6th August 2013, 8th August 2013, 28th August 2013 and 4th September 2013. Its lowest point was 120.05. It meant DLF broke the low of 124.05 by just 4 points.
Hence the above points suggests that there is a constant Demand between 120 and 124. Volume on 5th August was 89 lacs 79 thousands but on 6th August it rose to 1cr 22 lacs around 30 percent more. Same happened to next three occasions also.
I can bore you by giving you the relative figures of DLF with Nifty and Realty sector and also with UNITECH, RELIANCE(I use it as a bench mark stock) and with many other stocks.
So the probability of going DLF up from that point is very very high.
Now the trade setup.
One can take the opportunity by taking poisition in DLF's cash, futures or options. Cash and Futures is easily understood so for the sake of saving time for you I am giving the setup for October call options of 130
Yesterday's (i.e. on 27.09.2013) DLF's Call October 130 closed at 12.50 (Low-12.40)
Buy DLF's 130 October Call when DLF reaches between 124 and 118.
Theoretical value of DLF 130 call is 4.80 if DLF's cash price reaches 118.
Theoretical value of DLF 130 call is 6.30 if DLF's cash price reaches 122.
Theoretical value of DLF 130 call is 7.20 if DLF's cash price reaches 124.
HENCE BUY DLF's 130 October Call between Rs 7.20 to Rs 4.80.
LOT size of DLF is 1000 so total expected investment is Rs 4,800 to 7,200 and return is more than three times.
One should know that stock market is a game of speculation and no one can be hundred percent correct in this. Even the greatest traders of all times were wrong many times every month after month so I will advise all fellow members to use the STOP LOSS. This is the only way to get out from loosing trades otherwise during market hours one will keep hanging to the loosing trades and keep praying instead of getting out. But one should know that market is a ruthless machine and it doesn't work with prayers.
I have seen that mostly people just post the trades without proper giving reasons or sharing their setups. I have strong believe that no one can copy other trades or setups. I am posting here my this trade setup honestly but I know that no two people can use or trade it in the same manner. Leaving this topic for future discussion if anyone interested.
Last point to be noted is that I am just sharing my trades with you and I don't claim that I am always right. So please use your judgement while trading my trades with me.
(Courtesy - Traderji.com)
Hope you will also enjoy with me while trading the trades posted by me here. I will try my level best to find best trades with proper setups.
Thanks for reading my introduction.
I will try to post my trade setups here but it doesn't mean that I will take them blindly on the day it occurs. Many times I don't trade them. It basically depends on many criteria's like volume behavior on the trade setup day, price behavior near resistance or support or entry level, overall market behavior, sector's behavior etc. Sometimes I postpone the trade and sometimes I cancel it also. On weekends I try to locate the trades for the coming week and then trade them on weekdays.
Its now the time for posting my trade setup for DLF.
Yesterday's (i.e. on 27.09.2013) closing price of DLF = 132.85
Low of DLF on 4th Feb 2009 was 124.05
DLF touched those lows FOUR TIMES on 6th August 2013, 8th August 2013, 28th August 2013 and 4th September 2013. Its lowest point was 120.05. It meant DLF broke the low of 124.05 by just 4 points.
Hence the above points suggests that there is a constant Demand between 120 and 124. Volume on 5th August was 89 lacs 79 thousands but on 6th August it rose to 1cr 22 lacs around 30 percent more. Same happened to next three occasions also.
I can bore you by giving you the relative figures of DLF with Nifty and Realty sector and also with UNITECH, RELIANCE(I use it as a bench mark stock) and with many other stocks.
So the probability of going DLF up from that point is very very high.
Now the trade setup.
One can take the opportunity by taking poisition in DLF's cash, futures or options. Cash and Futures is easily understood so for the sake of saving time for you I am giving the setup for October call options of 130
Yesterday's (i.e. on 27.09.2013) DLF's Call October 130 closed at 12.50 (Low-12.40)
Buy DLF's 130 October Call when DLF reaches between 124 and 118.
Theoretical value of DLF 130 call is 4.80 if DLF's cash price reaches 118.
Theoretical value of DLF 130 call is 6.30 if DLF's cash price reaches 122.
Theoretical value of DLF 130 call is 7.20 if DLF's cash price reaches 124.
HENCE BUY DLF's 130 October Call between Rs 7.20 to Rs 4.80.
LOT size of DLF is 1000 so total expected investment is Rs 4,800 to 7,200 and return is more than three times.
One should know that stock market is a game of speculation and no one can be hundred percent correct in this. Even the greatest traders of all times were wrong many times every month after month so I will advise all fellow members to use the STOP LOSS. This is the only way to get out from loosing trades otherwise during market hours one will keep hanging to the loosing trades and keep praying instead of getting out. But one should know that market is a ruthless machine and it doesn't work with prayers.
I have seen that mostly people just post the trades without proper giving reasons or sharing their setups. I have strong believe that no one can copy other trades or setups. I am posting here my this trade setup honestly but I know that no two people can use or trade it in the same manner. Leaving this topic for future discussion if anyone interested.
Last point to be noted is that I am just sharing my trades with you and I don't claim that I am always right. So please use your judgement while trading my trades with me.
(Courtesy - Traderji.com)
