Author: Abhishek

Option Strategies – The story so far

Abhishek September 14, 2012September 14, 2012

I entered into some options trade, recommended by Stockviz “Option Ideas”. The above trade on TechM long call butterfly was put on 4th Sep. As I go through my options book today looks like all the long volatility trades paid off. Here are a few more that I entered the next day on 5th Sep.

All in all not a bad week I must say!! I will be counting my blessings and exiting these trades shortly.

and Go Algo!

[stockquote]BAJAJ-AUTO[/stockquote] [stockquote]BANKBARODA[/stockquote] [stockquote]KOTAKBANK[/stockquote] [stockquote]TECHM[/stockquote]

Categories Your Money Tags BAJAJ-AUTO, BANKBARODA, KOTAKBANK, options, TECHM

KFA: Trying to break free?

Abhishek September 13, 2012September 13, 2012

A 6% return in a 5 days time and the scrip still headed up. [stockquote]KFA[/stockquote] was trading cheap about a week ago. With hopes of FDI in the airline industry, it seems to have gotten the push. The technicals as of yesterday suggest a hold, but fundamentals haven’t improved that much over the week.

Prices pierced through the last 20 days triangle with the support of higher volumes suggesting a bullish breakout.

So, set your stop-losses at 9.50 and wait for the trend to play itself out.

Categories Your Money Tags KFA

Sticker shock!

Abhishek September 10, 2012September 10, 2012

Stocks worth more than Rs.1000 a year ago show an average yearly return of 9%, versus the 4% and –2% of [stockquote]NIFTYBEES[/stockquote] and [stockquote]JUNIORBEES[/stockquote].

Is the 4 digit price tag a psychological barrier that stops you from buying them?

Average returns of the top 5 performers for the last year [stockquote]ULTRACEMCO[/stockquote] ,[stockquote]OFSS[/stockquote], [stockquote]DPSCLTD[/stockquote], [stockquote]EICHERMOT[/stockquote], and [stockquote]MRF[/stockquote] is about 50%.

Higher ticker prices do not necessarily mean “expensive”. Investors who can tune themselves to ignore the price and focus on valuation will profit from trades that typical retail investors stay out of.

Categories Your Money Tags reading

GOLDBEES hit by RSI?

Abhishek September 7, 2012September 7, 2012

Goldbees [stockquote]Goldbees[/stockquote]touched an all time high yesterday with corresponding sky rocketing RSI;

Currently trading at

Looks like a Wait/Keep away for the short term.

Categories Your Money

To Catch a Falling Knife: KFA

Abhishek September 7, 2012September 13, 2012

The bird in the picture is none other than the brightly colored Kingfisher. Wikipedia has established in their status and conversation page on Kingfisher (birds) that “A few species are considered threatened by human activities and are in danger of extinction”. Can it be true for the Indian Kingfisher airlines [stockquote]KFA[/stockquote] as well?

Let’s have a look at what the technical tools are suggesting.

Prices have broken the 6 months trend line with good volumes. The heavy buying at the 52 weeks low also is suggestive of a potential resistance (You might want to check for another bounce back for confirmation).

Going forward, Guppy’s short term lines contraction are clearly suggesting an up move for the scrip in the near term. MACD is also lending a hand for this suggestion as the MACD line has just crossed the signal line from below (Pointing an upward possibility) .

Technicals suggest a short-term buying opportunity in Kingfisher. But long-term issues remain unresolved – this is purely a short-term, technical call.

Categories Your Money Tags KFA