Tuesday, October 5, 2010

Follow the Trend

I will be on Bloomberg UTV on Tuesday, October 5 at 9 AM (morning). Have a look.

The trend is up, therefore traders should position themselves to buy on dips. Apart from the Nifty, it is possible to trade in individual stocks - equity, futures & options. The basic rule remains the same, identify the trend, if it is up, then buy a breakout or dip. The market is in an uptrend, therefore most stocks will qualify for buying.

If you wish to buy, then hold for a few days to weeks, and sell out, you are a swing trader. You should be looking at equties mainly to buy, take delivery and wait for the appropriate exit. When you take the trade, identify a protective stop loss.

How do you identify the stock? Use a trend mechanism - higher highs, higher lows OR a rising moving average OR a trend indicator which is in a Buy. The reverse holds true for stocks to sell.

When you follow these simple rules written above, the biggest benefit is that you do not go against market flow.

based on the ideas mentioned hre, some stocks that may outperform are: BEL, GAIL, SRF, TATA CHEM. I have positions in Tata Chem. I also intend to track the others for low risk buy signals. No rush!

5 comments:

rajv malik said...

namaskar sukhani ji,

thanks for all the guidance you give selflessly on your blog.

recently you yourself conducted a popularity survey in which cnbc came on the top. now you have decided to shift to bloomberg which is not that popular. in fact i wonder if it was in the survey at all. why this decision ?

tv channels like newspapers become a habit. so is cnbc for so many of us. still i can say your not appearing on cnbc is a loss to the channel and also a big loss to the whole viewership who will not even come to know why and where you have suddenly disappeared unless they are lucky like us to be in touch with you through your blog.

the thing is you are not just like other analysts. my understanding is people love you and adore you for your fairness, helpful approach and simplicity.

i pray for your well being and welfare.

warm regards
rajiv malik
rajivhtc@gmail.com

Rajvir said...

Mr Sudarshan, do u know something else other than BUY ON DIPS ?

kk said...

RESPECTED SIR
YOU HAVE CHANGED THE DEFINITION OF CNBC. IT WILL BE REALLY FRUITLESS WATCHING CNBC NOW , AT LEAST FOR THE TECHNICIANS.ANYHOW, LOSS OF CNBC IS THE GAIN OF BLOOMBERG.

I HAVE A REQUEST SIR, PLS TELL US YOUR WHOLE SCHEDULE ON BLOOMBERG AND OTHERS.

Gaurav Verma said...

WIll Miss on CNBC

VVD said...

Sir,
i am a regular follower of your blog and your words from last 4 years.
Yesterday in Bloomberg you discussed more than 5 sectors and more than 15 stocks. This never happened when you were in CNBC, I am really happy that in Bloomberg you discussed many things.

HAIL you sir,
HAIL BLOOMBERG