SBI has moved around 20% for me. I'll explain how I plan to manage this trade ahead.
You can read how and why I picked SBI here -
https://share.gvine.app/yYujDrw15CLsLxC59
I have created my Substack, & I will begin posting there next week. I will drop the link here, so subscribe if you're interested :) I will also show who is interested, how to build a trading portfolio and enter the market at the right time in the next cycle after the correction. How one can outperform the market. ------------------------- The stocks that are on my radar are- ICICI B , JSW, Wipro, M&M. M&M has already given the entry but will wait for the pullback to get in.
I picked up Wipro around 460. I selected Wipro before I started posting here, but will explain in another post how I chose it, just to give an idea of how to catch such moves.
JSW Steel and ICICI Bank are getting ready, and I will initiate a trade when I get confirmation. I have entered with a probe quantity just to track it on a daily basis. They are doing the right thing for now. Again, I will only initiate if I get confirmation. I won't preempt.
Why am I going behind JSW, SBI, ICICI Bank, and Wipro? Why behind Bank Nifty, Metal index,Nifty IT when PSU, Infra, Realty, Oil, and Energy are going crazy?
Look at the index of Auto, Realty, Infra, PSU, Oil, and Gas, Energy. They have been consistently outperforming. Now if Nifty has to move up from here, which I think it will in weeks to come, I want to be in sectors and stocks that can offer a better good Risk:Reward. You always have to think about what can move next in the market.
SBI, JSW, ICICI Bank, etc., are undervalued and underperforming. The sectors I mentioned above are outperforming but overvalued at this stage.
Look at SBI and Wipro both have gone up 20% in the last 1 month without making any noise. I like it when the stock I hold keeps moving up without making noise on social media and news channels.
CHECK COMMENT SECTION FOR SBI.
It's not that I will not trade Oil, Energy, Auto. I have entered a few names from this list -
https://share.gvine.app/Hn9vxKmr86PkqJmx5
But most of the allocation will go towards underperforming and undervalued stocks.
Now about SBI, it has just gone vertically up. My initial buy was at 640, and I entered again at 732.
For eg. SBI, M&M are the stocks that have broken out before Nifty, these 2 are going to be the leader of the next upleg in Nifty, if it happens.
In the process, SBI also had an RS breakout.
RS = Relative strength. I have plotted RS against Nifty 50. If it's moving up, that means a stock is consistently outperforming Nifty 50. STRONG will always become STRONGEST in the stock market. Whenever a stock gets into All-time high breaking out RS, those trades work exceptionally well.
I have drawn the path on the chart, the stock can move in any direction, but that's how I have visualized it. Either the stock will move along that path or it will consolidate sideways Or in a downward flag structure.
Whatever it does, it will again give an entry opportunity to those who have missed, and it may shake out a lot of people who don't understand risk and chase momentum through Futures and Options.
But the broad trajectory is going to be up with pullbacks, only if Nifty doesn't have a crash.
My reference level (marked with a blue line on the chart) is around 710. If it breaches that level, I will see if I have to trim the position, book out, or hold. Until then, I will do nothing.
I will update further as and when things progress.
Thanks for reading :)
Link to my 1st Post where i discussed about SBI.
https://share.gvine.app/yYujDrw15CLsLxC59
I have scaled in 70% in SBI. (Avg 635). Bank Nifty is struggling but this is the Risk Reward kind of trade for me.
I just took 1 trade in Small...
I had shared about 3 trades here and rationale behind taking it. You can check it here -
https://share.gvine.app/sugCF7MjAeSSFkvh6
SBI - BUY Price 635 Up around 10% General Insurance - 360 Up around 25% APAR IND - Just around the buy ...
Below i have given links to my last few posts go through them to understand what i have done in the last 20 odd days.
I was mentioning it from the month of Feb that Banks, FMCG , Metal are the sector where Risk : Reward lies in the mar...
Check comment for update on silver & next sectors.
A lot of things have happened since my last update. I was caught in election volatility & booked out 50% of my positions. I was hoping for further slippages in the market, but price...
Here is the link - https://share.gvine.app/d85jqVYD85t9hqCSA
I made that post on a whim. I added this here just to let you know that i have SKIN IN THE GAME. I know the ***t i am talking about and i am not going to be just blabbering. ...
