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NeeteshJain
Jan 24, 2018 3:55 AM

PC Jeweller - Triangle Breakout Short

PC JEWELLER LTDNSE

Description

It has been observed that the price action breaks below the triangle consolidation indicating a further weakness ahead.

T1- 560
T2 -540
SL- 580

Trade active

Comment

Selling pressure building up

Trade closed: target reached

Target 1 reached.

Trade closed: target reached

All Targets reached.
Comments
motabaniya
Perfect.
MohammedJunaid
Perfect Catch! Appreciate it
NeeteshJain
@MohammedJunaid, Yes, it shall see further weakness ahead. Thanks
indiamarketoutlook
Nice one sir...!!!
mklives
so whts the stock call now? :) mega down move
turtlemove
awesome !
k314
Fantastic analysis and a big move!
sumangaddam
Dear Jain,

I have been confusing about can we short the equity stocks for more than a day. I know as of now that shorting meant for intraday. Your reply meant a lot to me. Hope to receive reply which clears my doubt soon.Thanks in advance.
Regards,
suman gaddam
NeeteshJain
@sumangaddam, The market trend is currently up but the movement remains stock specific, meaning that some stocks shall perform very well with the market and some shall do the opposite. Therefore, this stock was indicating a weakness when the market was moving up and therefore we shorted the stock due to its selling pressure in the market. Now, you can hold this stock until you see more sellers in the market in this one irrespective of market movements. Hope it helps. Thanks
indiamarketoutlook
@sumangaddam, Short selling in Equity can not taken on a positional basis as it would impose penalty for not giving delivery of shares to the counter party in trade...

However Positional short selling of Equity stocks can be done through Derivatives i.e using Futures and Options.

- Futures is a contract between buyer and seller where both keep certain amount as margin with exchange. No actual delivery of shares happens just the difference of price is settled on a daily basis. If stock falls seller of the Futures contract is in profit and Buyer is in loss.

If stock rises buyer of contract is in profit and seller is in loss.


- In options there are 2 types - Call and Put option.... To take advantage of falling prices, traders can either sell Call option or Buy Put option to make money if stock is to fall down

Hope this gives you some clarity of thought


DO remember The Risk involved in Futures & Options is higher.
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