QUANT SYSTEM TRADE RECOMMENDATION - 27.03.23
- Capt D. Ganesh Raja
- Mar 28, 2023
- 3 min read
From the desk of Capt.D.Ganesh Raja DATE: 27.03.23
I was supposed to post this blog yesterday but due to travel preparations for a new Marine assignment and subsequent travel, I couldn’t post it before market opening. The prices mentioned are as of Friday, 24.03.23 closing.
Indian markets have been witnessing volatile sessions and as of now Nifty is placed close to a very strong support at 16812.40. A strong rally does not seem likely but a weak recovery rally is possible. A very conservative, low leverage long position is recommended in Nifty.
The 10-year GS Bond index is on a steady uptrend, which gives some kind of cushioning factor if at all the markets resume their fall, post the minor rally.
Few new stock recommendations have been included. Existing recommendations remain valid as per the TRADE RECOMMENDATION LOG.
NIFTY: Last close – 16945.0. Recommend to long in Nifty at these levels, with stop loss at 16747.0. A very conservative leverage is used for this trade since multiple confirmations are not present.
Target 1 – 17600.00 , Target 2 – 17700.00, Leverage – 0.20x
Minimum profit potential – 3.9% , Asset allocation profit potential – 0.8%.
Minor trend : Down with upward tendency, Intermediate trend : Down , Long term trend : Down.
NEW TRADE RECOMMENDATION
1. RELIANCE: Last close – 2203.30. Recommended price – 2190.0 to 2300 to go short, with stop loss 2344.0.
A multi-top pattern, which has a support at 2325 to 2471 has been broken and volume pattern is confirming to it. This pattern could have resolved to the upside too but this is where patience and application of custom indicators give confidence as to which direction to trade. Also, Reliance has a high correlation to the energy index, which has already broken down sharply. A rally to retest the key support level, cannot be ruled out and which will come more in the “noise “category.
Target 1 – 2054.0 , Target 2 – 1937.0, Leverage – 0.20x
Minimum profit potential – 6.8% , Asset allocation profit potential – 1.4%.
Minor trend : Down with upward bias, Intermediate trend : Down with downward tendency, Long term trend : Down.
2. BPCL: Last close – 345.40. It is recommended to go long at these levels with stop loss at 330.0.
Target 1 – 360.0 , Target 2 – 370.0, Leverage – 0.20x.
Minimum profit potential – 4.2% , Asset allocation profit potential – 0.8%.
Minor trend : Neutral , Intermediate trend : Up, , Long term trend : Up.
3. BRITTANIA: Last close- 4199.95. It is recommended to go short at these levels with stop loss at 4320.0. Trend seems to be changing in this stock and pullback rallies are likely when this happens and that is the reason system has assigned a lower leverage in this trade.
Target 1 – 4093.0 , Target 2 – NA, Leverage – 0.10x.
Minimum profit potential – 2.5% , Asset allocation profit potential – 0.25%.
Minor trend : Down with upward bias , Intermediate trend : Down , Long term trend : Up.
4. HCL TECH: Last close – 1051.75. It is recommended to go short at these levels with stop loss at 1105.0.
Target 1 – 1016.0 , Target 2 – 957.0, Leverage – 0.10x.
Minimum profit potential – 3.4% , Asset allocation profit potential – 0.34%.
Minor trend : Down, Intermediate trend : Neutral , Long term trend : Up, with downward bias.
5. TITAN: : Last close – 2493.35. It is recommended to go short at these levels with stop loss at 2321.0.
Target 1 – 2747.0 , Target 2 – 2826.0 , Leverage – 0.15x.
Minimum profit potential – 10.4% , Asset allocation profit potential – 1.5%.
Minor trend : Down, Intermediate trend : Neutral , Long term trend : Neutral, with upward bias.
RETURNS TILL DATE SINCE 04.07.20 : 77.03% (AS OF FRIDAY 24.01.23 CLOSING)
LEVERAGE FOR EXISTING TRADE RECOMMENDATIONS: 2.35
LEVERAGE FOR NEW TRADE RECOMMENDATIONS: 0.95
TOTAL LEVERAGE: 3.30
ASSET ALLOCATION PROFIT POTENTIAL FOR NEW TRADE RECOMMENDATIONS: 5.1%
TIME PERIOD OF TRADES RECOMMENDED : 15 DAYS TO 3 MONTHS.
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