QUANT SYSTEM TRADE RECOMMENDATION - 14.12.21

From the desk of Capt.D.Ganesh Raja

Dear Friends,

I had clearly indicated in my previous post that 17700-17800 levels of the Nifty for shorting Nifty. It reached intraday high of 17639.50 on 13.12.21, about 60 points short of that level. Typically, if we are trading, we need to allow a bit of leeway on the level we decide. But to short at 17639.50, intraday systems would have been required. Since we are looking at positional trades, the Quant system gave a sell signal in Nifty on 13.12.21 closing 17368.25. I couldn’t post this yesterday since I was travelling.

Lot of stuff works theoretically but to put it into an actionable plan is a different game altogether. I am going to split the short recommendation in Nifty into two parts, one to ride out a longer-term trend and the other to move in and out of the position, to take some money home from the trade. That is the way to trade.

There is lot of discussions going on in informed circles about stance of RBI being dovish in spite of inflation expectations etc. so as to aid recovery. There is a similar stance taken by major central banks in the world. Let me not discuss too much about it for now and stick to my trade recommendation.

There are many stocks which have given sell signal but they need monitoring on daily basis, so I won’t be recommending them. BPCL & Coal India are two short recommendations which I have included in the Trade Recommendation Log, but a word of caution is to strictly follow the target and stop losses indicated.

GOLD (MCX): System gave a buy signal in Gold on 22.10.21, at 47,797.0, with a stop loss at 47120.0. Continue to hold gold. I further ran a check as per system and hence recommend to add to position in Gold at current levels of 48300, with stop loss at 47350.0.

Target1 – 50685.0, Target 2 – 54541.0, Leverage 0.3x plus 0.5x recommended now.

Minimum profit potential – 6%. Asset allocation profit potential – 1.8%.

Minor trend: Up, Intermediate trend – Up, Long-term trend – Neutral with upward bias.

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.

EXISTING TRADE RECOMMENDATION OVERVIEW

REFER TO TRADE RECOMMENDATION LOG.

NEW TRADE RECOMMENDATION

REFER TO TRADE RECOMMENDATION LOG.

TOTAL LEVERAGE OF ABOVE NEW TRADE RECOMMENDATIONS:1.80

COMBINED PROFIT POTENTIAL FOR ABOVE TRADES: NA

TIME WINDOW OF TRADES: 7 DAYS TO 30 DAYS.

TOTAL LEVERAGE INCLUDING UNCLOSED POSITIONS AS PER PREVIOUS RECOMMENDATION: 2.10X

RETURNS TILL DATE SINCE 04.07.20 : 57.93% (AS OF MONDAY 13.12.21 CLOSING)

TRADE RECOMMENDATION LOG.pdf

Download PDF • 583KB