QUANT SYSTEM TRADE RECOMMENDATION - 26.07.11
- Capt D. Ganesh Raja
- Jul 26, 2022
- 2 min read
From the desk of Capt.D.Ganesh Raja
Dear friends,
Nifty last closed at 16631. Our markets had a tremendous rally with a five wave up move, starting from 17.06.22, where market was 15293 levels. There is a very strong resistance at 161812 levels. So, it is better to wait at the sidelines and not to jump into a trade. Some individual stocks have given a buy signal which are mentioned under recommendation section.
GOLD: Last close- 50644.0. Today let us discuss a little in detail about the price action in gold since 10.07.20, leaving aside all other predictions. The pivotal price has been 48895.0 give or take a few hundred rupees, it doesn’t matter.
I will explore my bullish bias in gold in spite of its muted performance and I won’t discuss macroeconomic factors at all or any high-flying words.
After hitting a high of 56191 it followed a five-wave correction which we can say has completed one leg of the long-term cycle. Ever since the price of 48895.0 was successfully penetrated on 17.07.20, the price surged but this was short lived, with price retracting in a five-wave fashion all the way to 44441.0 on 26.03. 21.
Subsequently the pivotal price 48895.0 was attempted to be penetrated upward unsuccessfully in two attempts before finally doing so on 11.02 22. It is noteworthy to mention that third attempt penetrations are of significance. Price has stayed above that level ever since and has been forming a coil in form of a triangle. As per underlying base structure the consolidation between 04.06.22 till date was the beta wave of the long-term structure and price action is ripe for a new uptrend to emerge from this consolidation zone.
As I said before nobody can say for sure what would happen but we work with synthesis and tools which have worked multiple times reliably in the past. If there is any better method, I would be glad to educate myself. The common mistake which people do when investing for the long term is reading too much news which is all sorts of analysis and often confusing.
I might add to position if a shorter time frame signal emerges.
NEW TRADE RECOMMENDATIONS
1. PI INDUSTRIES: Last close – 3062.05. Recommended to go long at this price level with stop loss at 2880.0 .
Target 1 – 3314.0 , Target 2 – NA, Leverage – 0.15x
Minimum profit potential – 5.0% , Asset allocation profit potential – 0.25%.
Minor trend - Up, Intermediate trend – Up, Long term trend: Up.
2. TATA CONSUMER PRODUCTS: :Last close – 807.95. Recommended to go long between 790 to 810 with a stop loss of 752.00.
Target 1 – 863.0 , Target 2 – 895.0, Target 3 – 1005.0, Leverage – 0.15x
Minimum profit potential – 5.0% , Asset allocation profit potential – 0.25%.
Minor trend - Up, Intermediate trend – Up, Long term trend : Up.
TOTAL LEVERAGE OF ABOVE NEW TRADE RECOMMENDATIONS: 0.30
COMBINED PROFIT POTENTIAL FOR ABOVE TRADES: 2.2%
TIME WINDOW OF TRADES: 15 DAYS TO FEW MONTHS
TOTAL LEVERAGE INCLUDING UNCLOSED POSITIONS AS PER PREVIOUS RECOMMENDATION: 0.80X
RETURNS TILL DATE SINCE 04.07.20 : 58.82%
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