Trading Calls for 31st July 2009

Hi all

Following are the BUY triggers for tomorrow:

Banking sector is looking good. Many banking stocks have given buy triggers. The targets mentioned here are the first target. Upon reaching the first target, the second

target will be given. Only for Havells the second target has also been mentioned.

Updates of previous trades taken:

THERMAX buy was not triggered as it didn't reach the BUY price mentioned. SAIL achieved the intraday target given yesterday.

Happy and safe investing

DJ

Trading Calls for 30th July 2009

Hi all

BUY triggers for tomorrow i.e. 30th July 2009:

Updates for previously undertaken trades:

Intraday trading calls for 30th July 2009:

Shortsell SAIL

Target 166

Bearish Wolve Wave in 5 mins chart.

Regards

DJ

Trading Calls for 29th July 2009

Hi all

No BUY triggers for today. Infact a lot many SELL triggers. But, some stocks have already started showing good retracement after running up and I expect that within a few days they'll again get trigerred in my system. In the long term some stocks can go up a long long way. But long term investors should also wait for a few more days as they can pick up stocks at a lesser price. Short term investors need to wait for some days to get that perfect opportunity to make some very quick bucks.


Trade statistics for 28th July 2009:




Happy and safe investing
DJ

SENSEX P/E valuation

BSE SENSEX historically has been trading within the limits of 10x and 22x times its 12 months forward PE. This is very much clear from the chart attached for SENSEX spot price versus its 12 months forward PE bands. See how in early 1994, 2000 and 2008 SENSEX retraced after touching this 22x levels. And in mid 1992, 2002 and in 2008 SENSEX bounced off the lower band of 10x.

Another interesting observation is that each of the 10x, 13x, 16x, 19x and 22x levels acted as supports and resistances in the past. The one year forward PE multiple for SENSEX on today's date is around 17.7x. This is between the levels of 16x and 19x.

Doing a simple calculation, 19x indicates a level of 15,900 in the spot and 22x corresponds to 18,400. So 15,900 is the next resistance for SENSEX after which it'll retrace a bit, may be to 16x or even to 13x levels and if it crosses 18,400 within the next 1 year, we can say it will be too much overvalued.

Trading Calls for 28th July 2009

Hi all

Markets have climbed too much and a correction is due. All the stocks seem to be in overbought territory. As such not many of them trigerred BUY in my system today. You can consider the following stocks for buying tomorrow:

1. INDIAINFO
Buy above 131
Stoploss: 119
Target: 142

2. IDFC
Buy above 136
Stoploss: 127
Target: 145

Remember: BUY only above the BUY price mentioned here. The whole strategy works above this price. Target most likely be achieved in 5 to 7 days max.

Happy and safe investing
DJ

Welcome to Indian Investors Paradigm

Hello All
This is the space created by me to give out views and analysis on stocks, futures, options traded in Indian Stock Markets. Anybody can use the views and analyses in whatever way they like. This is a free forum. If you have anything to say, use the chat box provided at the upper right hand side of this blog.

If you feel happy with the views and make money just say a little 'Thank you' to me. I'll be more than happy.

Happy and safe investing
DJ