Open up outside of value and range and run higher.We know in Profile, whenever the market opens out of value and outside of range, there is a possibility of a large move in either direction.
With the markets accepting the gap-up within the first hour of the day, the possibility of a continuation move was higher than a fall back and re-test.
At one stage in the afternoon the quick launch from 5737 levels to 5777 levels was enough for adamant 5700 CE writers to start covering their positions.
We generally had seen the market and the global markets too to be bullish for this week, but the strength of that 40 point move even took me by surprise!
There have been enough adjectives to speak about the strength of the BN and by extension SBI. This index still has to give us a sweet spot for shorts to be placed on.
I'm sure quite a few of us took some shorts mid-day today, more out of disbelief in this big upmove than from any strong message for shorts coming from the market.
The message from the market is always very clear : above VWAP and Above value do not attempt shorts.Scalp trading is excused.
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2 comments:
Hi Shai,
I have purchased 1 lot Yes Bank @ 332 and 1 lot Reliance Infrastructure @ 1057...Can i exit with gains tomorrow?...or would you suggest to hold on till the end of expiry for bigger gains?
Thank You
Stock Watch for 14-09-10
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Long Recommendation:
JPAssociat, Unitech
Short:
Escorts (CMP 209.75): Sell below 207, Target 195, SL HVN at 210
Idea (CMP 74.6) : Short below 74.4 for Targets of 72.5, 71.4 SL at HVN of 75.1
Report for 13-09-10
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Long Recommendation:
LICHousing (CMP 1178.2) : Long at 1184 for Target of 1203 SL at HVN 1170 : Made a High of 1212
YesBank (CMP 320.75) : Long at 323 for Target of 329 SL at HVN 319: Made a High of 332.70
Short:
AsianPaint : Sell below 2800, Target 2783, 2747, SL 2815: Made a low of 2789
Thanks & Regards
Sanjay Kr Jaiswal
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