MESSAGES

5 and 200 dma are both 493. Just goes to say how painful this has been in the last 1 year for investors. Stay put, better times are coming.

on checking the last two share holding patterns it is seen that fiis have reduced their holdings by almost 80 lakh shares. this is a sizeable reduction of almost 40 percent. this month also one can infer that they are continuing their selling spree. so unless this selling comes to an end we cannot expect a meaningful reversal. it is also seen that our institutions have also reduced their positions. so one will have to wait for buying to come back.

after 490, there is no resistance till 515.

as i mentioned a few days ago, we need volumes for the counter. for day 1 it does not matter if the stock goes up or down. the very next day the stock starts going up. this happened the last time it touched 460 as well. essentially what happened yesterday was 10l delivery was taken. this is higher that the daily volume. obviously there is renewed interest now, old and weak hands move out and new hands make entry. you can even see the board. new members have started to comment. such is the beauty of the markets.

the timing of this dip is like a triple whammy. institutional money was locked in the hyundai ipo, a tepid listing meant they could not have cashed out as well. typically sip funds come in the first week of every month, so even that is off by ten days or so. finally, many people thought they’ve already bought the dip and another one comes so quickly. there is hardly any time to recover.

7th october - 469. 22nd october 468.76. in the retracement if it crosses 523 in a week, we are all set with a w pattern and return to good sustainable levels in the stock.

Titagarh is announcing results on Saturday. Some execution and off take trends or wagons must come. Maybe JWL will also soon declare results.

25L shares traded. Closed above 7th October price of 469. 8th October, an engulfing candle was formed and stock closed at 492. Tomorrow we need to see what happens.

Volumes have doubled and green candles are visible. Rest is for you to understand.

One clue is volumes is good as of now. If the stock going up from CMP from here and adds another 9L in traded quantity by 3.15, it’s a good time to consider buying.