Bulls Eye Fun
Today, wednesday will be my third day in the Game Show, Bulls Eye, shown on CNBC.
I will try to explain the reasons for stocks selected on Monday and Tuesday.
Infosys - The markets are expected to open strong on Monday on the back of higher prices in the US markets. Infosys, has seen a small correcion, therefore qualifies as a buy on dips stock + outperform due to American gains.
A deep correction in the stock may be over. Infrastructure remains flavor of the season.
Orchid Chem - This stock was also dsicussed in the 'Top 5 Picks' section in CNBC, in the previous week. A bullish head and shoulder pattern is on the verge of breakout.
Grasim - After strong rally, we saw a deep corrction. This seems to be complete with two days of sideways movements. The previous rally may resume.
Essar Oil - Remains inside a range after deep correcion, while CAIRN, ONGC have moved up. With crude seeing gains, a breakout from the range is possible.
Dolphin Offshore - Narrow sideways range near the highs in the chart suggests consolidaiton before strong breakout to new highs. And, of course, 'Offshore' is the magic word.
GE Shipping - Inside a trading range, may breakout keeping in mind the upbeat markets.
Welspun Gujrat - A trading range at the top of the chart has a bullish head and shoulder pattern. May outperform the broad market.
Targets:My targets were set for small modest gains, as a day trader was likely to do. In real trading, profits are taken in segments, or trailed, with some quantity left to ride the bigger trend. But, in the game show this is not possible.
Avoid:I decided to avoid the 5% circuit stocks. You name them and they hit a circuit early morning. While these qualify as gains for the show, viewers cannot actually buy them. So, I decided to avoid such stocks, and keep to the spirit of the game.
Basic Theme: The underlying theme is - stocks that are in an uptrend but seeing a dip, OR, stocks that are in a trading range with signs of bullish breakouts.
If you have questions, please post them in comments.