Tuesday, November 9, 2010

Beginning: The SMA 9 vs 4

On 7th November, I learnt the SMA 9 vs 4 technique. The details of the technique, I will reserve for an another post. With a clear application of this technique, I jotted down the experiment 'stocks' with my expected STOP LOSS and thanks to 'stock experts' who gave some targets for the same. Nevertheless, I used the recommendations from 'stock experts' only to the extent of short-listing the stocks for my experiment. It is humanly insane to apply SMA 9 vs 4 on all listed stock and short list among them. With a 2-3 hour research, I could find 4 stocks which met my criterion:

(1)  Jaiprakash Associates- BUY at around CMP 133; Stop loss : 118; (Kotak securities' recommended 12 month target:  163 - only the basis for shortlisting the stock for experiment)


(2)  ICICI bank –good bet – 1st Nov. SMA 4 cross SMA 9; buy at around CMP 1275; stop loss:  1100; Kotak  securities' 12 month target: 1345

(3)  Nagarjuna fertilizers – BUY at around 38; stop loss 33.5; PINC Research's 12 month target 45.

(4)Sterlite industries – BUY at around 181; stop loss – 170; Motilal Oswal's 12 month target: 217

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