Posts Tagged ‘RNRL Stock’

NIFTY falls below 4400

Monday, August 17, 2009 2 comments

This has become a nightmare for short term traders. One day down, next day up and down again . It is important to trade light because this choppiness can inflict serious damage to your trading portfolio.

The bulls had showed some promise last week by attemting to cross 4700 again but today’s sudden attack by the bears changes the game again .Thats what I like about markets- they never let you be complacent. I had to exit the longs on the opening and take the loss. Learning to accept that you are wrong is the hardest part of trading! Last week people might be thinking of 5000 and now they are thinking of 4000 again!

The prime reason for today’s correction was the meltdown in Chinese market. They were the first to give bullish signs in the current uptrend and now perhaps they are giving the first signals of a trend reversal.

This huge volatility is not good for the Indian market.This might be a signal that many bulls are offloading their stocks at higher level. With today’s sharp correction, bulls might not be able to hold 4380 and 4350 on the downside. The bears might even short more once these levels are broken. Which means that we are again looking at 4250 levels (back to the point from where we started).

Till now the medium term uptrend is up but if such sharp corrections continue for another week or so, even medium term bulls might offload their positions and turn bearish. This is definitely not the time to be aggressive.

Stock specific, I’d keep an eye on stocks that remain in long term uptrend. Even in today’s market, a stock like Aptech was holding well . Such stocks are good for accumulation on dips. Midcap IT and Pharma look relatively better. Auto stocks are also ok but very volatile, so trying to trade them is very risky.

Speculative stocks like RNRL, Suzlon,DLF might be risky at this point of time. One can pick them only if markets find support around 4250 levels.If markets bounce from there, these stocks might bounce sharply. At the same time, if markets correct, a stock like Suzlon might even touch 60-65.


Trading Strategy-RNRL

Sunday, August 16, 2009 Leave a comment

RNRL is a trader’s favourite as it gives significant moves in either direction for the traders. Currently the stock is in a tight range of 75-85 with a slightly bearish bias. So traders could short the stock on a rise close to 85-86, keeping a stop at 87-88. On the downside, targets could be 80 and 75. Countertrend traders might buy the stock again at 75 to trade the range.

Short term Momentum traders can go long if the stock closes above 86. The short term targets could be around 95.

Medium term swing traders can trade the stock if it picks up steam after crossing 95-100 barrier.The targets can be 115-125.

The stock might react to news on the current dispute between RIL and RNRL.

The intention of  this post is to show different ways of trading the same stock based on your trading/investment style. So plan your trade before you make buy or sell.

Also check out how the stock had moved in last bull market.

Markets resume uptrend

Thursday, November 15, 2007 8 comments

Yesterday was a day when markets resumed their uptrend. Now the only hurdle that remains is 6000 on NIFTY. If markets are able to take out that, then 6200-6300 is highly probable. How far we go shall depend on how many people go short on this rise.

At the same time we need to pay specific attention to their risks. Global conditions are still shaky and any sharp correction cannot be ruled out. So if you don’t act greedy, you will do well to ride this. Those who have booked profits at 5000 might feel tempted to jump in and we shall wait for such guys to give in to their temptations.We shall be getting out when such guys shall begin to get in!Its all about taking the right opportunities and managing your risks.As you are competing with the best in the world, you need to give your best.

My old favourites like L&T,RIL etc are doing well and some more momentum might be expected in these scrips. RNRL too is showing a renewed momentum and I have made a re-entry into the scrip. RPL seems to be suffering from “over ownership” and every rise in the stock is met with increased supply. It looks like RPL shall take a long time to regain strength. The price action on Power Grid too was not encouraging.Clearly one needs to keep a close watch on the stock.

One of our earlier ideas-JP Hydro is showing considerable strength and 100-105 looks possible in the short term. That might make it a “doubler” for us in less than three months!Still this might rank well behind couple of stocks that have given 3-4 times in last couple of months.

Now I know many of you(also many market commentators) might say that markets have “overshot” on the upside. I agree but our style is all about taking advantages of such moves(read greed). An Adani might be a bad stock but gave us 200%+ whereas an Infy which is a good stock gave -15%. What do you prefer? We just focus on making more money with lesser risk.

IT stocks are staging some sort of recovery but I won’t be taking it seriously till some real strength emerges. This was was more of a dead cat bounce (similar to what ITC did the other day).

Market Watch- BHEL, TCS,INFY

Wednesday, November 7, 2007 4 comments

BHEL is hitting new highs and TCS is hitting new lows. We are playing the trends by being long on one and short on the other. INFY is also back to 1750 levels which are strong support points to take a small countertrend trade.

RPL and RNRL continue to bleed and it might not be bad idea to do some opportunistic buying in RPL from a longer term perspective. There might be still more pain left in these stocks as leveraged players need to bail out and might be forced to sell at ridiculous levels!

Markets are still trying to make up their minds as to what they wanna do next. Its best to be on sidelines and take the next bets when things get clearer.

Next moves on RNRL and RPL

Tuesday, November 6, 2007 25 comments

It looks the whole world jumped into RPL and RNRL during the last two days. This might be one of the reasons for sharp reversals in these stocks. Whats interesting to note is that two days back no one questioned as to why these stocks were going up but on the way down many seem to be worried about future prospects of these companies!

Coming back to the stocks-Those who bought RPL futures in excess of 260 might have to book their losses on every bounce. Those who bought in cash may have to wait a bit. 205 is some sort of support for the stock. Below that 190 is a decent support. The stock shall face resistance in the 245 to 250 zone.

RNRL is in a little better shape with supports around 140-145 levels.

The only issue now is that every rise in these stocks might be met with selling pressure.Unless and until big buying emerges in these stocks, they might not recover fast.

All one can pray for is a smart recovery in these scrips so that traders can trim their losses. Lets see if our prayers get answered.

Categories: Market View Tags: ,

Market Outlook

Tuesday, November 6, 2007 2 comments

Yesterday was actually not a bad day as it looked. If you were in the right stocks, you might have made good money. Infact, this week has been just too good from short term trading perspective. RNRL has generated close to 80% returns in a week. I had missed this beauty last time but not this time!

Today is an important day from short term trading in NIFTY. Today’s market action can determine the future direction. I am still trading on the long side except for an odd TCS on which we went short close to 1100 levels.

I am seeing lot of action in individual stocks which might actually be good for taking short term bets!

RNRL up at 145 -up 21%

Thursday, November 1, 2007 2 comments

I had just entered RNRL at 105 levels last week for a short term punt. My target was around 140 bucks in two weeks and the stock did it in just 3-4 sessions.

This is market which is a trader’s delight!

Categories: Midcap Stock Ideas Tags: