The Indian stock market has seriously underperformed since Dec 01, 2022. Nifty is down 6.5%, BSE Midcap is down 5.1% whereas BSE Smallcap is down 5.3%. But even during this time of extreme negativity, there are stocks that made textbook formations and have done exceedingly well. It is a great reminder of why one should pay attention to what the stock is doing and benefit from it. I keep covering these trades to help you build conviction in this trading system. I hope you like it.
Focus on what the stock is doing, and not what it should be doing
Cummins India [I did not cover it]
A strong stock continues to outperform and one should never let such opportunities pass when they dip to support levels
Lots of times we miss out on great opportunities thinking about how high they can go without realizing their potential. As a trader, we should never be afraid of buying stocks near highs as long as we have the discipline to cut losses when the stock fails to hold the support. Cummins India stock has been in a steady uptrend and every time it dipped to 100 dma – it bounced with intensity.
ABB [I did cover]
ABB has become a BUY on 200 dma stock and I am glad I recommended it every time it dipped to 200 dma
Linde India – Simple Resistance Breakout [I did cover it]
I love when stocks do a simple breakout where they quietly rise above the resistance and then outperform like crazy. Linde India broke out above 3550 and I immediately recommended it as a buy. Just see what it has done since then.
JBM Auto – Breakout Pullback and rally [I did cover it]
I love when stocks witness a pick-up in volumes with a breakout. JBM Auto kickstarted its breakout journey around the middle of Dec and since then it has done exceedingly well.
PNB Housing Finance – The breakout that worked [I recommended it just before breakout]
PNB Housing Finance was all set to break out as it bounced from 50 dma. The stock gave a strong buy signal around 440 in the first few weeks of Dec and the stock never looked back since then. Even in the current market environment, it’s up 40% in 3 months.
Source: Chartalert.com
Chalte Chalte
A healthy respect for the market is always necessary. A trader must respect a market as is without any bias. Nothing works all the time but as long as you are prepared to take action based on what’s happening, you would do fine.
If you find my work interesting – I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, and they fail but the whole process is really fun. I invite you to be part of it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers