Syngene:

For long term investors - Buy at any dips
PnF Chart (1%*3) Stop loss level - 570 (previous low O's below Anchor column)
Candlesticks Charts - 605 (below gap boundary)

below Anchor column breakout** (ABC)

SAIL - I am not holding it as of now. Chart for learning purposes. I always have a bullish bias for a stock in a particular sector that is performing so well.

A typical example of stock taking a pause in between during its upwards journey.

Abbott India (AbbotIndia) - every time in the past stock correction was followed by a minimum 100% rally. 30% up move already and the stock has now crossed its all-time high. Will it give the same move again?

Must have portfolio stock. It is FMCG of Pharma.

Asian Paints - you need to be flexible for the chart reading. Do not try to impose a pattern when there is none. Sometimes, a simple trend line would serve the purpose.

Here, please understand the concept of the "Internal Trend Line" and its significance.

United Spirits Ltd - Monthly Log Scale 🍻

In this thread, I will explain to you the psychology behind the cup & handle pattern. The attached chart is of Balaji Amines.

Point 1 = Profit booking by many traders and fresh short positions opened taking the stock down till level 2 where there is no more selling

Point 2 - a level wherein the stock becomes attractive again for fresh buyers and short positions will be covered adding strength to the stock.

It moves back till point 3 which is now the psychological resistance level and would again see profit booking by weak hands.

But, this time the stock fell till point 4 wherein the buyers (smart hands) are willing to pay a higher price and further push out the weak hands absorbing all their selling. This is the ideal entry point for a risk-loving trader as this is the closest to the stop-loss point.

Finally, you see - in the whole process - the stock has shifted hands from uninformed retail investors to "smart hands". And finally followed by a cup and handle breakout. The target will be the depth of the cup projected upwards from the breakout level.

When to take entry for a conservative investor? At candle no 5 - the breakout candle and stop-loss a few % below breakout level.

In the next thread - I will explain to you how the same principle works for most of the patterns (No need to mug up the pattern names)

BSE Ltd - Ignore the noise. Trust your charts. Focus on what the chart says you. Keep on riding to your winners. Trail Stop losses but do not sell.

Tata Elxsi - Scallops are most common but I found them rarely in Indian stocks.

More on scallops by Thomas Bulkowski here 👇

https://t.co/DAZAWXbnJu

Pidilite - although not a trading grade stock. A must-have portfolio stock but it is always better to chart them to find the perfect time to do SIPs.

PI Industries - A textbook H&S. Why? Because in an H&S pattern, the volume peaks at left shoulder. The volume diminishes at the head which is the first warning signal. Thereafter, the stock is unable to form a fresh high at RS at even lower volumes leading to a breakdown.

Balaji Amines - Double top buy active on 1%*3 PnF.

Polyplex Corporation - Often price targets play the role of resistance especially when there is no overhead resistance for the stock. A perfect example in this case.

Radico Khaitan - getting interesting with the current squeeze above 20 EMA. Weak hands are booking profits.

SL 840

HDFC Bank - for ultra conservative traders. Breaking out.

HIL Limited - how many times it gave you the opportunity screaming to be bought. And every time you must have ignored it because you missed the initial few points at the first breakout level?

Try to catch the strongest counters at the next consolidation with strict SL.