QUANT SYSTEM TRADE RECOMMENDATION - 06.06.21
- Capt D. Ganesh Raja
- Jun 6, 2021
- 6 min read
From the desk of Capt.D.Ganesh Raja
Dear Friends,
The views presented in last week’s blog still holds and there is nothing fresh for me to add as for markets are concerned. There is no need to close the long positions now since there is no indication from the Quant system as of now. Also, as per Elliot daily wave count it seems that the impulse Gamma wave is in progress. It is the most dynamic of the waves in any wave structure and generally is profitable in holding positions longer. It is like tending to positions closely in critical times and when multiple proprietary indicators indicate that a trend is in progress, let positions stay and relax. Here it is matter of perspective depending on one’s objective about the trading strategy. For someone, one year maybe short term and for someone else one week could be long term. People who have strict profit taking strategy can take profits at the target levels indicated, but I write the blog comprehensively taking into account the combined system indication and formulate the correct strategy. Riding on to a longer-term trend required enormous experience and the willingness to give up short term gains too.
There is a Fib grid congestion at 15834 levels where we might see some amount of profit taking, which could be sharp, typically characteristic of bull market. Instead of selling, I would look for further buying opportunities. It can be tempting to ignore system readings to take part in a strong rally but it can prove very costly. One has to be cautious always. But we are holding to positions longer based on system confirmation and if there are reversal signs , would have no qualms exiting the same positions.
People generally have a perception that these kinds of systems are only for very short time frame but if well designed they can be used for longer time frame investment decisions also. Also instead of rotating stocks which can increase transaction costs , it is worth holding well selected existing positions because for long term financial goals one needs to give more leeway and returns potential is also much more.
Gold & Silver: No fresh inputs from my side and I stick to the views presented few weeks ago.
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.
Note3: A separate excel sheet is attached to view the performance of the recommendations, which also reduces the task of individually reporting the performance of each trade recommendation. Viewing the excel sheet “TRADE RECOMMENDATION LOG” will be self-explanatory. Also in this sheet Trade recommendations which are still active are marked.
When signals are triggered mid-week, that is updated in log sheet and covered in the weekend report , due to paucity of time.
MARKET & NIFTY OVERVIEW
Nifty: LAST CLOSE – 15670.25. System gave long signal in on 07.05.21 at 14823.15. Continue holding long position. As of now there is an absolute profit of 5.71%. Short term traders can keep a profit protection stop at 15514.0.
Target1 – 15350.0 (Achieved), Target 2 – 15535.0 (Achieved), Target 3 – 15834, Leverage 1.0x
Minimum profit potential – 3.5% (Achieved). Asset allocation profit potential – 3.5% (Achieved).
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
GOLD: LAST CLOSE – 48994.0. System gave long signal on 07.05.21 at 47751.0. with a stop loss at 46650.0. Presently at an absolute profit of 1.78%. I had informed that there is a possibility of a slight dip in Gold, which we are currently witnessing. Continue to hold long position in Gold.
Target1 – 49400.0, Target 2 – 50200.00, Leverage 0.3x
Minimum profit potential – 3.5%. Asset allocation profit potential – 1%.
Minor trend: Neutral, Intermediate trend – Up, Long term trend – Up.
SILVER: LAST CLOSE – 717539.0. System gave a buy signal in Silver on 05.05.21 at 67524.0 with stop loss at 67200.0 and presently at an absolute profit of 5.95%. This trade is positional and of a little longer timeframe so continue to hold long position in Silver, for the intermediate trend to play out.
Target1 – 76219.0, Target 2 – 79141.0, Leverage 0.2x
Minimum profit potential – 11.5%. Asset allocation profit potential – 2.3%.
Minor trend: Neutral, Intermediate trend – Up, Long term trend – Up.
EXISTING TRADE RECOMMENDATION OVERVIEW
1. BAJAJ AUTO: LAST CLOSE – 4250.05. System gave a buy signal on 07.05.21 at 3856.75 with stop loss at 3794.0 and presently at an absolute profit of 10.20%. Target 1 was achieved on 27.05.21 but continue to hold long position with profit protection stop at 4199.00.
Target 1 : 4231.0 (Achieved), Target 2 – 4425.0, Target 3 – 4400.0, Target 4 – 4950.0
Minimum profit potential – 9.7% (Achieved). Asset allocation profit potential – 1.5%.
Minor trend: Up, Intermediate trend – Up , Long term trend – Up.
2. BPCL: LAST CLOSE – 478.25. System gave a buy signal on 07.05.21 at 443.15 with stop loss at 424.15 and presently at an absolute profit of 7.92%. Target 1 was achieved on 27.05.21 but continue to hold long position, with profit protection stop at 460.60.
Target1 – 480.0 (Achieved), Target 2 – 533.0, Leverage 0.15x.
Minimum profit potential – 8.3% (Achieved). Asset allocation profit potential – 1.20%.
Minor trend: Neutral, Intermediate trend – Up, Long term trend – Up.
3. DLF: LAST CLOSE – 296.95. Recommended to go long around 270.0 levels on 23.05.21with stop loss at 250.0 and presently at an absolute profit of 9.95%. Continue to hold long position, with profit protection stop at 281.35.
Target1 – 304.10, Target 2 – 323.35, Leverage 0.05x.
Minimum profit potential – 12.0%. Asset allocation profit potential – 1.5%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
4. HDFC LTD.: LAST CLOSE – 2619.05. Recommended to go long on 23.05.21 at 2518.85 with stop loss at 2440.10 and presently at an absolute profit of 3.98%. Continue to hold long position.
Target1 – 2595.0 (Achieved), Target 2 – 2695.0, Leverage 0.15x.
Minimum profit potential – 3.0%. Asset allocation profit potential – 0.5%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
5. LIC HSG. FIN, LAST CLOSE – 530.22. Recommended to go long at 456.05 on 23.05.21 with stop loss at 420.0 and presently at an absolute profit of 16.26%. Target 1 has been achieved on 04.06.21 but Continue to hold long position, with profit protection stop at 480.58.
Target1 – 500.10 (Achieved), Target 2 – 566.20, Leverage 0.10x.
Minimum profit potential – 9.6%. Asset allocation profit potential – 1.0%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
6. L&T: LAST CLOSE – 1537.35. Recommended to go at 1418.05 on 23.05.21 with stop loss at 1368.20 and presently at an absolute profit of 8.41%. Target 1 has been achieved on 04.06.21 but Continue to hold long position, with profit protection stop at 1455.0.
Target1 – 1521.10 (Achieved), Target 2 – 1605.0, Leverage 0.15x.
Minimum profit potential – 7.3%. Asset allocation profit potential – 1.10%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
7. TATA MOTORS: LAST CLOSE – 334.95. Recommended to go at 313.10 on 30.05.21 with stop loss at 285.0 and at presently an absolute profit of 6.98%. Continue to hold long position.
Target1 – 370.0, Target 2 – 424.0, Leverage 0.20x.
Minimum profit potential – 18.2%. Asset allocation profit potential – 3.6%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
8. RELIANCE INDUSTRIES: LAST CLOSE – 2190.90. Recommended to go long at 2094.80 on 30.05.21 with stop loss at 1990.0 and at presently an absolute profit of 4.59%. Target 1 was achieved on 03.06.21 but continue to hold long position.
Target1 – 2200.0 (Achieved), Target 2 – 2320.0, Leverage 0.20x.
Minimum profit potential – 5.0%. Asset allocation profit potential – 1.0%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Neutral with upward tendencies.
9. KOTAK BANK.: LAST CLOSE – 1811.20. Recommended to go at 1800.75 on 30.05.21 with stop loss at 1705.0.
Target1 – 1982.0, Target 2 – 2120.0, Leverage 0.10x. Continue to hold long position.
Minimum profit potential –10.1%. Asset allocation profit potential – 1.5%.
Minor trend: Up, Intermediate trend – Neutral with upward tendencies, Long
term trend – Neutral.
10. COAL INDIA: LAST CLOSE – 153.10. Recommended to go long at 146.90 on 30.05.21 with stop loss at 137.10 and at presently an absolute profit of 4.22%. Continue to hold long position.
Target1 – 173.10, Target 2 – NA, Leverage 0.10x.
Minimum profit potential –17.8%. Asset allocation profit potential – 1.5%.
Minor trend: Up, Intermediate trend – Up, Long term trend – Up.
NEW TRADE RECOMMENDATION
Since all existing trade positions have been recommended to be held, no new recommendations to make.
TOTAL LEVERAGE OF ABOVE NEW TRADE RECOMMENDATIONS: NIL
COMBINED PROFIT POTENTIAL FOR ABOVE TRADES: N.A.
TIME WINDOW OF TRADES: 7 DAYS TO 60 DAYS.
TOTAL LEVERAGE INCLUDING UNCLOSED POSITIONS AS PER PREVIOUS RECOMMENDATION: 2.85X
RETURNS TILL DATE SINCE 04.07.20 : 44.09%
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