Our simple selection process was a good success in March.
New month and new F&O contracts call for new selections. Let us have a look at the Strength and Weakness in NIFTY stocks first.
Strength First :
With NIFTY moving downwards there were not many strong candidates. TITAN tops the list, but having gained 13% last month, I am not taking a chance with it. It may carry on with the up move, but nothing is certain.
I will take my chances with my earlier selections TECHM and NTPC.
Another one to be added is INDUSIND as it is showing a strong performance among the banking stocks.
These three are the BUY SELECTIONS.
Weakness is everywhere.
We continue with LUPIN, TATAMOTORS, BAJAJAUTO and SBIN out of our first list. All these stocks made 52 week lows in March and some of them did it more than once. So these stay on the SELL list.
We had added HINDPETRO and VEDANTA ( VEDL) later; they also continue to be on the list.’
From our earlier list, we have omitted Indiabulls Housing Finance and Maruti and BOSCH.
Others on the SELL list were:
We stay with these selections too.
This makes it a total of 12 stocks.
BUY SELECTIONS— 3
SELL SELECTIONS — 9
With the likelihood of a gap up opening in the market today, there is a good chance that selections may not be doing well today ( as SELL selections are more in number ) , but we are not in it for one day only. Eventually, things should work out.
SGX NIFTY looks like this at 8:15 am today:
NIFTY had closed at 10113 on Wednesday ( March 28, 2018 ) and then markets were closed for holidays.
We may expect 10200 levels today and that is the point generally where selling started on two occasions in March.
Let us see whether that trend prevails.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.
Sha Navas April 2, 2018 at 8:55 pm
Don’t you think ICICI Bank would make a better candidate for SELL than SBI? Both are showing weakness but there is a lot of negative news about ICICI.Reply