52 week highs and all time highs strategy

Hi Hitesh Sir,

Read some blogs of Mark Minervini. I came across the name of Mark, a stock trading Wizard, very recently. My bad, In fact. I read the Minervini trend template. Checked some ready made screeners in Chartink. It throws up 15 odd names which surprisingly don’t have much overlap with 3 m/6m top gainers , 52 week high , pharma names, or typical quality names etc. Seems its some different track altogether. That makes me bit jittery.

Would be interesting to know your experience with Minervini template and screens to make a portfolio of lets say 15 stocks. My plan is as below along with top 15 stocks from screener for your reference.

Broad Level Strategy

  1. Create a 15-stock portfolio of Minervini screener

  2. In parallel, study earnings growth of the stocks and look for Techno-Funda concurrence.

  3. Load up slowly on stocks where momentum is backed by fundamentals/earnings growth.

  4. All this while exit on each stock is strictly based on % trailing stop loss of 20% system

  5. 1.5 % loss on each trade

Minervini Screen Stock Portfolio

  1. Alembic Limited

  2. HISARMETAL

  3. Granules India Limited

  4. Escorts Limited

  5. Jubilant Foodworks Limited

  6. Reliance Industries Limited

  7. Info Edge (india) Limited

  8. Berger Paints (i) Limited

  9. Muthoot Finance Limited

  10. Tata Chemicals Limited

  11. Adani Green Energy Ltd

  12. Balkrishna Industries Limited

  13. Multi Commodity Exchange Of India Limited

  14. Dhanuka Agritech Limited

  15. Aarti Drugs Limited

Wish you great health and wealth :blush:

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I also prefer to do momentum trading and monitor 52 week highs ( all time highs even better). Also the list gives an early indication of the sector which is currently doing well ( from short to medium term perspective). I prefer to have higher allocation to the sector where the stocks are hitting all time highs. esp the ones which break out first.
I think at present, the agrochemical sector is showing strength. I have invested in Coromandel International ( highest allocation), Mahindra EPC , Bayer crop science, Astec Lifesciences (presently consolidating) and PI Industries ( yet to break out properly as compared to other stocks, minor allocation). Also another criteria i look for is good growth in recent earnings which is the case in these stocks.

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Bayer signal came long back. It is in new orbit now. Invested .

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My new investments based on this strategy Swaraj and VST


Will update when the price touches the green line

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Vaibhav Global has recently crossed its all time high…could be studied further.

Rgds
RR
Disc: Invested for fundamental reasons

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This is something I have actively tried, without much success. And that’s because, I have never been able to set SL well. If I set a strict SL (previous significant level), it almost always gets triggered, and then there is an upmove. If I set a loose SL, the breakout turns out to be false, and it slowly drifts downward. And before I know it, the price is 25-30% lower.

Any guidance how to set SL, and monitor this post initial purchase?

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I personally strongly believe in this strategy, but I have almost always suffered because I am unable to set good SL. Any advice on that front? False breakouts are quite common, and most all time high charts show a fairly good base formation

i will suggest you to read books - How to make Money in stocks ( William J O’Neil) and Mark Minervinni books - Trade Like a Stock Market wizard and Think and trade Like a Champion.

SL setting in my opinion should be based on your risk / reward ratio. The targeted risk/ reward ratio should be atlas 1:2. However, you have to measure the actual ratio which you are getting by analysing your performance. If the risk reward ratio is high then the SL can be wider and vice versa. For day traders the SL will be tighter and will be liberal for long term buyers. It also depends on volatility (ATR) of a stock. Having a very tight stop loss for low liquidity / small cap stocks may not work.
So if you are looking for a 20% kind of gain then your stop loss should be less than 10%. However if your wins on average are garnering say 12% profit then SL should be on average 6% or less. Also, you can have 2 SL’s . Sell 50% at each SL.

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Essel Pack
52 Week High Base formation

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sethufan,

How do you find the Green & red levels on monthly chart?

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Astec lifescience breaking out and now trading above its previous all time high.

Disc - Invested

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Hiteshbhai
One year daily chart of Balaji amines is posted above.

  1. It broke 52 week high with all time high volumes for a single day
  2. I feel a reverse head and shoulder pattern has formed.
  3. Also, there is a cup and handle pattern formed.
  4. Fundamentally, the company’s Q4 results were better than previous quarters of FY20, ramp up in subsidiary, new expansion project, higher sales realisation advantage (could be temporary), benign raw material prices, operations back to normal after lockdown and almost no impact on demand are few things going for the company.
    Would it qualify for this strategy.
    Also request you to look at the chart and give your observations. Thanks

Disc. Invested in Balaji amines

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Hello Friends,
Am Devendra from Ahmedabad, newbie to VP and also new to direct equity market. Am actually Covid era beneficial, wanted to study market but could not do due to other priorities in life. I just started direct investing, am long term - blue chip investor as of now.

VP is amazing, Thank you all for creating such platform. Technically it seems simple but have some rich features. Thank you the maker and contributor.

Continuation of the topic of Hiteshbhai, recently I come across theory of volume shockers - it basically says share will gets momentum if it

  1. Have volume more than 10x in single day (without bulk deal)
  2. Have price impacts of more than 10% in share price
  3. High % of delivery.

The thinking behind theory is that some insider and close follower knows some inside information and act ahead of it. For us its basically to take advantage of such event.

As indicated being part time player this is not my cup of tea. Also let me warn all that I failed in my experiment.
Experiment: TCPL Packaging
Event occurs: 15/6/2020
Price: Friday (12/6/2020) was 240 which close to 263 on Monday (15/6/2020).
Volume: 54000 (15/6/2020) vs below than 5000 normal days
Delivery: High
Next day (16/6/2020) it rose to 277 but could not sustain level and closed on 247.
Conclusion: am out with slight loss after a week. I may have sold next day with profit but can’t do such short term transactions.

Disclosure: Please please use this theory with great caution. This may not be suitable for part timer / long term player like me. You need to take decision quickly with stop loss etc. else chances are more for you to stuck at high. Also I don’t have much in depth know how so may not able to answer your queries. Just illustrated here for one’s consideration only.

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@basumallick dada , then if as per new quarter there are different 10 companies , then should those replace the earlier ones irrespective of the earlier companies improving in performance? In other words , does this strategy involve churning irrespective of improving fundamentals? Thanks

Yes. It is one way of constructing a portfolio. You cannot keep adding stocks which are making 52-week highs, because after a while you will lose track of who is doing what. If your stock is really doing well, it will keep reappearing on the 52-week high because if the price keeps going up, it will keep hitting new highs.

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Again…same stock which I posted earlier. Bayer Crop Science
Flag on Weekly Charts. Part of the current Agro Theme. Looks headed to 7200

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Another Flag on Weekly Charts. Shree Digvijay seems to be headed to 72 odd.
Cant justify it fundamentally, but technically ya, this is the picture

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Rallis india heading towards all time high,key eye on this

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Great initiative to start and demonstrate how to play 52 week strategy

BUT entry is like entering into CHAKRVHU but selling is what make would make Abhimanyu to live long/survive

1)Getting into momentum bandwagon is easy but getting out is difficult…I would urge top participant to share selling technique too …

2)Selling at appropriate time is one of most important thing for profit making.Please share some important parameters to track for selling decision …
If possible please explain with past example
Thank You…

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All largecap pharma-Dr Reddy, Sun, Cipla, Cadila gave good breakouts this week. A few charts that seem worth tracking

Aurobindo Pharma weekly chart. It has crossed last 3 year highs of 840 and headed to all time high of 895

HDFC life near all time highs resistance for 3rd time.

Ambuja Cements- Broke a 3 year old downtrend and now at multiple resistances at 225

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