Exide India - symmetrical traingle

Thx Shabbir for your guidance and expect many more trading strategies from you.

Going on vacation this weekend

 

Very true - and I am finding decent fundamentals of script + current market trend sector wise + plus more number of futures contract for that particular script is a sure shot receipt of trade success.

Whats your views Shabbir ?

Thanks

 

Exide above 152 will rock. Volume added almost 3 days higher.

On top of that 151.50 is its 52 week high. So watch out stock next week.

 

Exide crossed its major resistance 152 today. It has made new 52 week high with high volumes, it is trading at 156 now.

 

Can exide ind be bought near 152 with stoploss 140 for a short term target of 165-168 ?

 

Exide is looking good @ cmp and u know 140 is the support area as well as 50% retracement level and it can go up to 178.

 

Bull Flag breakout with high volume as well.

Sanjay can you provide your analysis in detail way, on what basis it would touch 178 ?

 

Sure here it is

Sujan u can see the rally of exide started frm 124-125 level and went to 157 level.
By this rally we can find 50% retracement level is 140 if it corrects which is also good support area.
But if it works for us because of breakout then it can go up to 161.8 % retracement level @ 178 level also it is in third wave of Elliot wave which is the strongest wave.

 

Sanjay and Sujan ! can this stock reach around 165 within one or two wk time from now...If so then I can enter with larger quantity otherwise I will buy smaller quantity.Because I think I am buying this stock tomorrow.

 

Sujan ! I am attaching 3 yrs wkly chart of exide.Here you can easily see Eliot waves.Eliot wave 3 is giving breakout above 152. Fibronacci forward retracement 61.8% is at the level of 153.9 & 78.6% is 168.9 .Besides this historical chart shows resistance level at 177, 178 & 180.

 

In my calculation Eliot wave 3 in this will extend upto 188-190. But beware reaching this target may take more time...and perhaps time can't be predicted with accuracy

 

About 1 or 2 week time frame I am not sure, about 165 level I am very much sure it can achieve easily and very soon .

About smaller or big quantity, u r willing to do mistake and asking us our view.

My view is don't trade like a fool and don't just imagining of big profit, see the other part also that if this trade will not do as u or we are thinking then how big u r going to loose cause no body is perfect in the world neither u nor we or any other expert.

Just trade with discipline and u will definitely earn handsome money after the end of year.

 

Entered in @ 153.50

 

Entered @153.80

 

Sanjay/Sujan,
Forgive me if this is a stupid question.
How do you keep Stop loss in Futures? Is it the same level as in cash market?
in futures it is going to be a huge loss if SL is hit, especially if lot size is more. In case of Exide 1 lot = 2000 and if we bought at 152 and SL is hit at 140 then loss would be
12 x 2000 = Rs 24000.
Is there a different rule of thumb for futures?
Thanks,
Sudin

 

It's not a stupid Q but a valid Q.

If you are taking position in Future....you must always take counter position in Options.

For example If you are purchasing Exide Future 1 lot(2000 shares) and assume that it is trading at 154.

Now if stock takes you turn and start falling, you can always be in safe if you would have purchased Exide 140 or 150 PE option ( 2 lots = 4000).

If stock goes above 154 you can make money in Future. If stock comes down you can make money in 140 or 150 PE.

This is how you have to trade in FNO. Risk in options is always limited to the premium you paid.

Regards
Sujan

 

If stock goes above 154 we make money in Future. But we loose some or all money in 140 or 150 PE. Right? You are saying the gain we make in Future is bigger than the loss in PE. ?
Thx,
Sudin