Intraday Trading Levels for TATAMOTORS / TATASTEEL (06/Jan/2011)


The support and resistance levels for today are still the same as listed yesterday. (The resistance levels are (R1)1304.70, (R2)1312.50, (R3)1320.30 and (R4)1328.15 and the support levels are (S1)1257.80, (S2)1250, (S3)1242.20 and (S4)1234.40)

Note: I am experimenting with an alternate approach. What prompted me to think otherwise was the trading experience with Hindalco. The scrip was swinging wildly (just look at its movement today and you will understand what I am trying to imply over here). One minute it will be trading at 248; within 15 seconds, it will be trading at 247.20. I have never seen such swings (I noticed something like this with Suzlon too some weeks ago).

The scrip is not touching any one of the levels listed. Hence, it is safer to keep oneself away from trading it today. I was looking at TATASTEEL at the same time. The support levels are 679.70, 683.60, 687.50 and 695.30. The low price of the scrip (as of 13:24) is 681.50. I am long at 683.60 with a target of 703.10. The stop loss is set at 679.70. Let me see what is in store for me. 🙂

Trading Results

I bought TATASTEEL at 683.60. The scrip did not move much today. In fact, it was playing around that price for a very long time. I noticed that many were selling in large numbers as the scrip inched towards the 685 to 687 mark. On such days, we cannot do anything rather than waiting for the scrip to touch our targets. Neither profit nor gain since Karvy squared off for the day at the same price. I may have to part with the brokerage fee though.

However, I noticed that if I had stayed with the original plan (of day trading with TATAMOTORS), I could have made some profits today. The lowest price attained by the scrip was 1248.35. and this value is well below the S2 listed above. We could have gone long at S2. The closing price of the scrip was 1261. A profit of 11 points was in store if I had played with TATAMOTORS today! Since I play with a limited amount of money, I cannot trade with multiple scrips at the same time. But, I am happy that my calculations are working out to be accurate everyday. And that is what which matters in this arena! We need to keep ourselves alive for the big fight the following day.

PS: Did anyone note the price movement of HINDALCO today? I had already mentioned about the bullishness displayed by this particular scrip. Stay away from such scrips if you are into day trading. Yeah, of course you can try an alternate approach – buy the scrip blindly and wait for the profits to roll in! But think of the long term effects of such day trading methods. At times, people go into the “buy fest”. No calculations of price levels will work for such scrips then.

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