Symphony-A support reversal with volumesSymphony is a good positional trade as it has given monthly reversal breakout
However, stock has not shown growth in previous few quarters which can lead to slow rally.
Q1 is always fruitful for AC-Fridge manufacturers. Lets wait and watch how this stock goes.
Buylowsellhigh
Tata Chemicals rangebound Tata chemicals has formed a beautiful symmetrical triangle pattern and requires traders to trade the range, buying at the lower trend line and selling at the higher. It has also formed a golden cross- When 50EMA passes 200EMA from below showing bullish nature.
A break of the lower trend line will see an end to the trade, making it a risky one.. Hence we should position size in a smart way.
What is position sizing?
It is when you first add half your position to check If the market is saying you are right or wrong, if the market moves in your direction, you will add your second half and tighten your stop loss. This way you add two positions but one only when the market shows you that you are correct.
Example: Suppose your risk is 100 per trade, You first buy enough Qt to risk only 50 ( Typically with a larger stop) and if the market forms a green candle or another bullish sign, you add another Qt to risk 50 more ( Total risk 100) and your second stop loss becomes tighter ( most probably at the breakeven of the first position) this way you minimise your loss but ur reward is the same and even more. If your first stop gets hit, you accept your mistake and move on.
I would suggest to risk only half of what you normally risk on this trade since the risk to reward is very favourable with a small stop loss.
Example- If you normally risk 1000 per trade, this time risk only 500 since the potential is the same reward with lesser risk making it a A+ set up.
If a green candle or a bullish candle is formed at the trend line, we can add to more positions.
Keep It Simple
BSOFT is 45% below its all time high - Buy Low Sell HighAccording to Mr. Peter Lynch's strategy , when a stock is trading below its recent / all time high but is producing its highest ever income, that its a good place to buy low, and then sell high.
NSE:BSOFT is a small cap scrip trading at Rs.318.3 which is 45% below its all time high Rs.585.85.
Revenue is growing, income is growing, dept to asset ratio is less, PE ratio less than sector's, so fundamentally & financially strong.
Price fall might be because FIIs are booking profit in this scrip, from Jan 2022. Which is affecting all IT stocks, especially small caps.
Since NSE:NIFTYSMLCAP50 index need 23% rally to meet its all time high, there is a high possibility of these strong small caps to rally too. So it would be a better entry price to hold till this rally.
Key note : Always follow proper risk management to avoid losing capital from false breakouts as this is common.
Caution : This is a knowledge sharing analysis, not a call.
19/10/2021 Research Report For IEXDisclaimer:
I am not SEBI registered person and this is not an investment advice and also please note this is only for education purpose. Also note we can use this research for my own portfolios. So don't influence yourself by this research. Please note before investing according to this educational research, please do your own research and also do take advice from your financial adviser before invest any single rupee. Your any profits and loss are totally your liability. No one is liable for that. Also, please note we will not never compensate your any loss. So before investing any single rupee, please do your own research according to your risk taking capacity and after that do invest and book profits on right time.
Buy at C.M.P (Current Market Price)
Target 1: 1000