Tuesday, October 5, 2010

Gold Silver

Silver and Gold - Both precious metals are sparkling. But these gains did not happen overnight. These metals were in a trading range for many years. Then came a breakout and a number of rallies with sharp corrections in between. Each correction is an entry opportunity. Even now.

Rajvir asks: "Mr Sudarshan, do u know something else other than BUY ON DIPS ?"

Actually, rajvir, I also buy on breakouts, but I do not discuss this strategy on TV or this blog because I worry that amateur investors may rush in to buy at the very top. Buying on dips has the safety of low risk.

I am grateful to Rajiv Malik and KK for their affection towards me, which they have expressed through this blog. Thanks a lot!

Today's Times of India carries an advertisement that is selling some Canadian trading software with 100% accuracy. If this is correct, why are they selling this product at all?

As I write, the U.S. markets are on a big rally. This should have its affect on Indian markets tomorrow. No need to take short positions. Either go with the flow, or watch.

Today, I mentioned on Bloomberg Utv that PSU's may be developing as a theme. Just like PSU Banks, 18 months ago. BEL, Gail are just two names. You may like to do research in this sector, maybe identify some PSU's which are really dark horses.

5 comments:

rocky said...

Indian Markets have done anything but follow Global cues past few weeks, I wonder if the U.S. rally today is a good opportunity for the FIIs to book some profit tomorrow if domestic investors flock the markets....?? Just a Pessimistic thought in this Optimistic market.

Sri said...

Sir,

As usual thanks for the wonderful insights. Only when people experience it first hand of buying at the tops and losing, they realize the importance of buying on dips. Its just matter of time they will realize what is best, if "at all" they can afford to stay in the markets.

Sir, I have a question about IndusIndBank. I had bought this stock at Rs 35. If you see the daily charts, its just going in one direction and yesterdays close was Rs 281. How do I decide when to exit? [I have already removed my investment amount and have let the profits running.]

Thanks and Regards,
-Sri

NITIN DAMLE said...

Dear Sir,

Nifty is in uptrend there is no doubt in this.ADX which shows strength of a trend is reading @ 50 which is unusual. MACD is showing -ve divergence, can we expect some more consolidation a minor dip before next upmove? Today no doubt mkt. will open gap up but taking into account these readings I think it wii be better to wait Pl. guide

Ravi said...

Dear Sudarshan Ji,
It's sad to see you go from CNBC, that was the only reason to ever watch the business channel, but we'll be watching for you on Bloomberg now... not that you need to hear it from us but good luck for your personal life you've really earned your grey hair and your rest.

One thing that is really nice to see now is that we do a scan and you mention the stocks that came up.... we're referring to BEL and Gail, thankyou so much for mentioning them... now we know that we're doing things right.

On a serious note we would like to ask how would a trader go about picking stocks based on volume what would be the minimum volume on a stock that would make it worth trading? Is there a reference average volume, like 10 candle average volume etc?

Again thankyou for all your contribution.

Regards,
Neha Gupta & Ravi Chandra.

Nifty direct said...

I am really grateful and appreciate the discussion which occurred between Rajvir and Mr Sudarshan
i got some good strategy from this discussion Rajvir(you) created a good question. Thanks Rajvir asking for the question