Analysis on March 7th trade 58.5% Profit

Welcome Traders,


This is the end of the day analysis on the stock we selected yesterday(07-03) for today's intra-day trading.

For those who are not aware on how we selected the stock please wathc this video demonstrating How to Pick Stock for Intraday in 2mins.

These are the list of stocks and its support and resistance  which I posted yesterday, these stock gave an average of 4% move today if we had full capitalized the movement each stock would have give atleast 60% Profit by using leverage . Click here to see the stocks

 I have place trade on three stocks and gained a profit of 58.5 % intra-day. I will analyze the two stocks which I traded, you shall analyze other 4 stocks and comment if you have any doubts.

PROFIT 

RELINFRA

RelInfra as marked it came to the first support line and found support, here we have to think whether the support came from buyers with good volume, when you had checked the market depth at that time, there were too many buyers at that price level, and the total buyers reduced when the price started to move up, which is probably not the sign of strong buyers.

A strong buyer has to support the price at multiple levels, by bringing in more volume when the price struggles to go up. But in our case it was not. thanks to the Zerodha's Market Depth tool which will help us to identify this.

Once I found that the buyers has lost the strength at the price level near 435 I shorted RELINFRA at 427 after  confirming that the support at 427.42 is not longer valid. I booked a huge profit in that. But my friend failed to do so as he had already got locked in the IDBI he just traded with RELINFRA with small margin, but again he made profit :D

IDBI

IDBI as marked it went up to the first resistance line and got rejected, again it tried to move up but again it failed, it shows that the sellers are showing strength. Once the price started to fall it is confirmed that the sellers has come in to control, which clearly bough the price down.

This is how we have to analyze the market for entry and exit. We should never place a trade in hurry market will always give opportunity for you to enter trade so time the right trade. It does not mean we have place a trade the moment we see a odd change in the market, we have to wait and confirm that the change is valid reversal point.

Other stocks which we picked also showed some movement, I booked profit in TV18BRDCST but those stocks did not exhibit strong buy or sell signal. If you check PCJeweller it also showed big movement but I don't have enough capital as all the capital was locked in these three trades.

Check the blog tomorrow at 9AM for the stock pick for the day. 

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Regards
Team FIG