TA-simplified - 1st January

consider this writeup as my own diary and not as a buy/sell recommendation service

A very happy New Year to all of you. I had a free Zoom Webinar yesterday that you may access here: https://t.co/7jQbdIjFl0

Nifty 50 - only if you remember we discussed this chart for a very long in all the letters and mentioned how any index making higher lows is a positive sign. Today, let me introduce one more concept of ‘over-extended’. Anything that is beyond 20% or more from 200 MA is considered as stretched as per my findings on the chart and what I learned from Sir Dan Zanger. We are still some 13.5% away from 200 MA. Overall, we are in a very strong up-trend so far in large-cap space.

But as we move forward, I have started to lock half gains as the stock moves up 13-15% or more and ride the rest with a trailing stop.

Can you now please open up the Midcap 150/ Smallcap indices and check how far are they from the basic 200 MA? It gives me a sense of when to be aggressive to lock our gains to avoid giving back much to the market. Remember, capital preservation at all times is the key. For the investors, they will follow their own exit rules.

I have a lot of stock setups to share here. But, you may check Mazdock/LT/3M India/AU Bank from our previous letters.

AU Bank is still hovering near the same area that we discussed and I have a minor position here with 768 as a stop.

Suzlon: have you noticed that many stocks are not immediately reacting after the positive news of order wins for instance? Mazdock was one such example. Now, I can’t explain to you how long I was waiting for a volume spike in Suzlon on Friday. My sense is that post the BO, it may test the previous recent peak around 43. Let us see

Zydus Life: Post the strong move, the stock is just consolidating above the resistance. We call it is healthy sign or you can say a mini base-on-base pattern. That upper red line is where I may be interested.

Texmaco Rail: I will see today or this week if this stock can bounce back up from the level mentioned.

Glenmark Life Science - my preference is more than 20,000 cr companies as of now but this is a delightful to watch 102-day consolidation that I am stalking at

I have a lot of names and it became too tough for this weekend for me to prioritise. You should have a look at their charts, once.

This does not mean anywhere that I am buying aggressively. I have a total of 6 positions open with 3 being risk-free. Therefore, as per my rule of not holding more than 4 positions with open risk - I have a scope to add one more.

I am as of now not churning much once I have a clear leader in hand. I just intend to pyramid up some in Apar, Mazdock, or HSCL if they show me some positive action for this week.

With this, I end up with my long note. I will have more for you this week.

Today, I will be posting my Technical Analysis Module detail that is commencing on January 27th. Stay tuned in case you are interested.

Thanks and have a very happy new year.