Trading Report January 17, 2010

I was late to the party and could take up my position in front of the trading terminal by 09:45 only. I saw that I had already lost opportunities where I could have shorted (BPCL).

SBIN was in the chop-zone, so I refrained from trading that scrip.

Anyway, I decided to trade with HINDALCO. The support levels were 226.60, 225.00, 223.40 and 221.90. I went long at 226.60. After hovering around the price for sometime, it began to fall. 225.00 was my stop loss. I reentered once again at 225.00. The scrip touched 227.70 and began to fall (once again). My target was 231.25. I allowed the system to square off and it did the same between 225.50 and 226.00!

I was able to recoup some of the losses; however, it was a non-profitable day.


Once again, the market was highly volatile on this day. Traders / investors are confused. Pay some attention to the daily chart of HINDALCO and you will realize the extent of indecisiveness portrayed today.

On the bright side, my calculations regarding the nifty’s index values were true. You may read it over here. The lowest price attained by the index was 5624.15 (one of my support levels for today was 5625).

The losses which I attained in HINDALCO is minuscule. My math (with the help of which I derive the support and resistance prices) is correct. However, when people are stricken with panic, they sell in large quantities. On such days, we have no other option than to lick our wounds and think of a better tomorrow. 🙂

I will be posting the Nifty support and resistance levels for tomorrow shortly.

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