Infoedge/Naukri has been consolidating after a big previous upmove. It has formed a VCP pattern or inverted H&S pattern. Today it seems to be breaking out with volumes already much higher than Monday. 52 week high is closer to 5900 but that was a level seen for a short time only.
Sentimental positives of recent Zomato listing and upcoming Policybazaar IPO.
Also, attrition in IT sector is at all time highs, which should be positive for Naukri
Schaeffler India has been discussed in a previous post as an all time high breakout candidate. Putting up a chart which I find interesting in same company. Stock price has broken out of a flag pattern. Height of flagpole is from 5400 to 6860, a height of 1460. Adding that to breakout point of 6860 provides a target of 8320. Previously it was mentioned at around 6700 when stock price broke out of all time high of around 6000. Results and concall have been good.
Tata Power is a company that is transforming itself in terms of business model and there seem to be multiple triggers fundamentally. Following chart is interesting and findings are written on chart. disc: invested based both on technicals and fundamentals.
Most Pharma names have been correcting sharply after disappointing results. However, one large pharma name that is making new all time highs is Torrent Pharma. However, the volumes continue to shrink on the right side of the pattern. Lets see if we can get a move with volumes
Have booked profits in Naukri. Here is the updated chart showing a very clean move from Breakout. Nothing wrong even here but the first targets were done and I had a positiong in F&O so sold into strength.
Electric-power transmission sector stocks are near 52-week high and forming good cup & handle/rounding bottom formations.This sector may benefit from the stimulus from the government to create employment and income in this pandemic situations.
Sharing some chart setups which looks interesting.
Follow up to my July 17 post in this thread above on Orient Electric. Stock corrected post breakout after June 2021 results. While it had impact of lockdown but peer havells did well. Stock corrected and took support on trendline. Bounced back with good volumes. All consumer durables are doing good on expectation of better performance in coming quarter
KOLTE PATIL a real estate company recently cleared an important pivot at 270 . It has broken out of a cup and handle pattern / or complex inverted head and shoulders pattern with targets of close to 400. With strong moves in most real estate sector stocks, it looks interseting. disc: starter position based on strong chart pattern.
Hitesh bhai - Slightly off topic but any book recommendation on crowd psychology behind various technical patterns? I can sort of understand why any pattern would play out in intraday trades but when a pattern span across months and years, it doesn’t seem very intuitive that collective psychology would steer the stock price in a certain direction. Of course it is all probabilistic but i am looking for some resources to understand this better.
PS: I would delete this message if someone points out its irrelevance to this thread.
We have always done this. The way consensus forms has changed, the medium (excuse the pun) has changed, but the outcome and behavior is still the same. It took a Faraday to figure this out - that shows how non-intuitive this is for the rest of us.
I think The Next Apple tries to cover the psychology behind multiyear and 52 week breakouts by trying to give logical reasons. Its a book oriented towards medium to long term investors so could fit the bill.
SCI cmp 115 is showing an interesting pattern. It broke out of a 10 year high above 100 levels (113 on bar charts) and went up to post a high of 135 and then retraced to retest its 200 dema at 93. Since then it has gone into a steady uptrend and currently it is around 115. In the process of this retracement which has lasted nearly 27 weeks it has formed a flag like pattern (marked on GMMA chart posted below. This flag is sitting right above breakout level and assumes a lot of significance) and now seems to be breaking out with decent volumes in past few days. Pattern target of a double bottom long term breakout as well as flag breakout is around 170. (disc: invested and no activity since past few weeks.)
In this rally post Covid, which has spanned part of 2020 and all of 2021 till now, one thing I have observed is that most technical patterns like cup and handle, flag, double/triple bottom etc have played out in a text book fashion. Timeline for these patterns to play out have varied but the net results have been according to expectations.
The other crucial thing I have observed here is that in most patterns once the targets have been reached, there is the inevitable profit booking. Many a times post this profit booking the upmoves resume after brief consolidations. Sometimes post breakouts, there have been sharp falls, more so in frothy upmoves.
So what I have been doing is that I tend to book atleast partial profits wherever I do not have too much fundamental comfort. Other places where I feel business prospects are good and valuations are comfortable, I have managed to sit tight.
Regarding criteria to ride entire upmove, I think the foremost criteria should be strong tailwinds in the company and the sector. Once that is established, stock prices usually rally hard.