Apr 032011
 

A few days back, during my interview with Deepak Shenoy, I had suggested that one should wait for at least 185 to buy the stock as I continued to be bearish for that stock (it was trading around 210 at that time, in late Feb). I returned from my holidays and looked at the chart, and wow, this stock has rallied some 30% from a low of 208.50. So what happened there?
Put mildly, I was caught on the wrong foot. Let this serve as a reminder to all that no technique can assure a positive outcome, no matter how (supposedly) clever the analyst is! So how can one guard against serious losses, then? First of all, understand whether the recommendation is to BUY or SELL. When I speak of a preferred buy level, it is not a recommendation to sell. A buy or sell recommendation will come after considering various factors. It has to be a low-risk trade either way, but always bear in mind that there is still ‘some’ risk. To survive in the market, we need to ensure that the risk we take is affordable. So we decide both our position size and the stop-loss level when initiating a trade.

If you ask me what one should do in DLF now, I will probably be loathe to give you a straight answer, because the signals are still conflicting. Why chase something that already went wrong?

  8 Responses to “Wrong-footed on DLF”

  1. sir pls look at chart of Nifty After 1st zigzag X wave should go to 61.8% as per your level but is it possible that X may extend to 78.6% because many analyst talking about level of 6000 plus in nifty. pls reply……

  2. Dlf upmove will fizzle out in 275-279 area and will come down to 230-232 levels

  3. Dear Sir,

    Please throw some light on Unitech Ltd of Indian Markets. Is it going to make another low in this month of Apr around 18.50 levels (This level has cropped up from my own attempt to EWA).

    Your guidance will be invaluable.

    Regards

    Aniruddha

  4. An honest post ! Goes to show that the markets can fool even the best of people . Markets are supreme.

    Thanks sir for your posts, always educational.

  5. With ref. to my earlier post dated 03 april “Dlf upmove will fizzle out in 275-279 area and will come down to 230-232 levels” please note that targets have been met today.

  6. DLF is ripe for a up move from current levels of 225. Tgt 1 = 245 , Tgt 2 = 275

    • Prerna, wavetimes readers would appreciate any technical or fundamental reasons you may have for your views. Where is your stop etc. Therein lies real value

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