MID WEEK TRADE REVIEW - 19.08.2020

From the desk of Capt.D.Ganesh Raja

Mid-week trade review is just to have a re-look at the trade recommendations given end of the week if there are movements in the recommended securities contrary to what has been synthesized.

Note for reading this report:

Note1: The stop losses are on end of day basis

Note2: When trade recommendation is given around a certain price, it means that the trade may be taken the next trading day or if a price zone is given for taking a trade then trade has to be taken on the day price reaches within that zone.

NIFTY OVERVIEW

Last close on 19.08.20, Wednesday – 10408.40. In our weekend report we had seen multiple technical indicators showing a downward bias to the market. That stands negated now and a higher order wave seems to be asserting itself and as of today’s closing NIFTY has given a system exit and triggered a buy signal with a stop loss at 11111.

Target zone seems to be in the zone of 11744 to 11870. Minimum profit potential -2.94%. Leverage – 1x

Minor trend: Topping indications and downward bias got negated, Intermediate trend: Up, Long term trend: Down with bottoming out Indications.

EXISTING TRADE RECOMMENDATION OVERVIEW

1. USD – INR: Last close – 74.90. No change from weekend report.

2. GOLD: Last close – 53571(MCX PRICE). Gold is in accumulation zone as recommended in weekend report

3. GAIL: Last close – 101.45. Recommended price – 96.60. System has given an exit at this price and no further action required. In the synthesis in weekend report multiple technical factors were indicating a downward move but that has been negated. Though there is no buy signal in the system now it may trigger a buy signals in the next few days.

4. GRASIM: Last close – 664.25. Recommended price -636.55. Though Target 1 (663.0) has been achieved continue holding long position.

5. HDFC BANK: Last close – 1066.60. Recommended price – 1043.85. System has given an exit at this price and no further action required.

Many of you might be wondering why I am suddenly changing my view on certain securities, recommending a trade in opposite direction than originally recommended. The answer is, I have no view and just following whatever the system readings are indicating. Years of experience in the market has taught me that market is always right. If multiple confirmations are indicating something not corroborated by market move, I would go with the latter because that also is part of the system.

That brings us to the simple premise that the idea of a trade recommendation is to protect capital and make money, not lose it.

Happy trading!