Ruchi Soya Industries Ltd stock ( ticker Ruchisoya ) is another addition to our 'losers becoming winner' series. Earlier we have already discussed two more stocks and their possible good upside potential, namely - Unitech and Amteck Auto. Since we have already mentioned the common rationale behind these trades in previous trade posts ( please check the link for...
There are some trading decisions you make can be filled under "Insufficient Evidence" category. Here you have to make decisions based on common sense rationale. Data centric analysis will always point towards negative bias and you will never be able to find the reason for another 50% or 100% rise in the stock next day or week or month or year later. Is it...
Both antipodeans - AUD/USD and NZD/USD poses the same conundrum and that is whether to short based on global clues and central bank bashing or go long purely based on yield advantage. At times, one factor is more powerful than another. But it is foolish to go all in relying solely on fundamental factors during such skittish market. Difficult market to trade...
A little good news can get Amtek Auto rolling. For almost one and half year Amtek Auto stock has been scrapping the bottom near Rs. 30 level. Recently company has starting paying more attention towards debt reduction and restructuring working with Morgan Stanley and Rothschild. What would ultimately will happen is still a guess but even a slightest positivity...
AUD/USD 's topside was contained between 0.77 and 0.78 for entire year during 2016. So far it is very similar story like in the beginning of 2016. AUD/USD has strong start of the year by climbing 1000 pips - from 0.68 to 0.78. Thus it's natural for current uptrend to pause near the same level. Whether we will see 0.80 in coming sessions will depend upon how...
So far our strategy to buy NIFTY near the support levels ( first near 8000 and later 8250 ) and selling the quick bounce ( first near 8400 / 8450 and recently 8600 / 8650 ) has been fairly successful. Now in next few sessions we are going to deal with bigger variable - Union budget of India for 2017 by Finance Minister Mr. Arun Jaitley. Inexperienced traders...
Another 100 / 150 pip pullback in British Pound against US dollar is possible but we are looking forward to buy that pullback initially around 1.24 / 1.2350 level. Of course fast and furious couple of hundred pip moves in GBP/USD is very characteristic of the pound so need to keep the risk in check in case it undone everything from 1.20 to 1.27. As we mentioned...
Divis Laboratories' stock has been technically damaged by sudden burst of bubble. Only hunky-dory sector in Indian stock market which can stand on its foot is pharma after much publicized IT sector. Pharmaceutical companies stocks are like runaway trains, exhibiting near vertical rise on the charts. There is no way that this can continue forever. We did...
Bharti Airtel Ltd's stock ( Ticker BHARTIARTL ) has been in sideways consolidation for roughly about 8 years from 2008 to 2016, with a broad range of 240 - 440/480. We have traded this range successfully with simple sideways trading strategy where you buy at the range support and sell near range top. But this time we are less inclined to get involved, at least...
When it is tough to believe anyone, people start acting on rumors or "misinterpretation" or whatever you want to call it. Long-term capital gains tax for the stocks investment in India is zero-nada-zilch. It means, if you buy some shares of xyz company and hold it for more than a year - 365 days - then when you sell that stock for profit, you don't have to pay...
A general tide has lifted all the boats and now when it's ebbing, to borrow Mr. Warren Buffet's phrase - we will soon find out who is swimming naked. Many stocks have gone from ridiculous to insane levels and they are bound to come crashing down. Emami Limited's first test will be at 900. That support may not hold during the thick of the things and we are more...
Yesterday we talked about how AUD/USD is going to suffer from rising US dollar and also mentioned the reason for AUD/USD to remain pressured. ( Please check the link ) Similar argument can be made for NZD/USD too. Many hated the rise from 0.6500 to 0.7500 and tried to short it in vain. To stick with the short US dollar stance, we were long NZD/USD too ( which...
As you know that we have been dip buyers in AUD/USD and NZD/USD from the beginning of the year. But now the dynamics has changed. Rising US yields ( Fed Dot Plot suggests 2 or more hikes in 2017 ) and positive US dollar sentiment will hurt both antipodean currencies. Attraction of 0.7000 level will pull AUD/USD down. The question is, if AUD/USD can rise upto...
First come the hype of rising economy under the sobriquet - BRICKS. That hype got extra air in the balloon by loquacious leader. Party started with free money provided by QE ( courtesy of Fed ) would have still been rolling if it hasn't got the kick in the gut by demagogy and populist pandering. Being long Indian stocks is dangerous especially in the face of...
During next 10 days, liquidity will be very thin in Forex market. That means, usual rules doesn't apply where you expect a pair to get fair support and resistance. Illogical moves over/under shooting the big levels may occur and that will only provide good trading opportunities for those who are experienced and patient. For GBP/USD, we are looking for 1.22 and...
Auropharma - Aurobindo Pharma had an impressive run from 100 to 900 in two years. We believe that Pharma sector will always do good in India and have mentioned the reasons for that numerous times in the blog here. Big pharmaceutical companies around the world will keep on outsourcing manufacturing to Indian pharma companies because of cheap labor, lax...
It is tough to envision positive future for the euro during such divisive social stance we are witnessing across the world. Euro's problem is not a Fed hike but it is experiencing the existential threat. If it is all about rate divergence then it can be mitigated or it may not have such downside reaction for one of the most forgone conclusion in Fed's history. ...
It's little early to get enough liquidity and judge the major moves at the beginning of the week but we are looking for these support / resistance levels in major currency pairs to get few pips. EUR/USD - All eyes on 1.0500. That's a make or break level for the euro. If 1.0500 goes away and parity talks are back on the table with high probability. And in fact...