No doubt the script has performed exceptionally well and we are yet to witness more of it but before that we are also going to witness some sort of correct. Market always gives you second chance and you can consider this as one of it. On back-testing the historical records of this script it confirms this bearish move in script. On analyzing the monthly candlestick of Feb 2021is acting as the dominant candlestick and it's low is acting as support level for the script i.e at 269.75. And on the daily chart system EMA (11 & 22) has already confirmed the bearish move for the script, we might see a retesting from the MA and continuing the bearish move. Wait to buy the script at discounted price to get the most of the movement.
You writing strong bear move and you writing LONG also for this stock. People will get confused i think so. If bear move is there then it should be SELL signal. Correct me if i am wrong.
psumita108
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@vagrawal27- Mr.Agrawal, I really appreciate you are reverting on the post to correct my blunder. Yes, I did mentioned that script is in bear trap but I also insinuated to wait for the right time to buy the script at discounted price that indicates that I am waiting for the trend reversal. I don't usually promote shorting because there are individuals who lack proper knowledge on how it works and quick gains in shorting process can give them a different high if it works in their favor or they might just exhaust their account as they hardly give relevance to position sizing.
I will make a note of your comment so I can get better at this to avoid future blunder and more specific about such crucial thing that you have highlighted today.
Thank you again.
Artofchart
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Your analysis is right. Good work on back-testing
Personally I see it as a combination of correction and knee jerk reaction to the Chip Shortage. I am using this opportunity to accumulate on dips. Bullish on this script.
psumita108
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@Artofchart, I appreciate that you took time (most valuable asset) to recognize my work and comment on it. I'm just waiting for the right time to get into the position as there are many stuffs that are going on in the market like low volatility, trading in low margin, active case between trader union and SEBI to increase the margin up-to 50% to maintain market equilibrium, FDI/FII activities impacted by this ongoing pandemic, etc. I hope this becomes better by each passing day.
Thanks again and stay safe.
Jay_10
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Can i wait for buying tata motor?
psumita108
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@Jay_10- Yes, we need to wait to take any position from bullish perspective. As we know it's not just this company who is going through this. There is a scarcity of electronic chips in the market which has already impacted specifically auto sector by 60 billion USD. This has happened before during financial crisis 2007-2008 due to which companies had to rise automobile's prices which is directly going to impact the sales and another reason can be depleting demand as the economy is going through rough time due to this ongoing pandemic.
My whole point of writing this is that the industry maybe be facing this issue rightnow but it will overcome this shortage to stay in business. I will update details when it's time to go long.
I hope I have helped you clarify your query.