Analysis:
# BOB closes the week strong. Went below 100 triggering the stops, took support at important 90-91 level and close above 100 for the week.
# The stock is in uptrend and just made a 2.5 years high in 7th feb week.
# Fundamentally PSU banks have completed the grueling NPA cycle and it seems better days in terms of higher NIMs and profitability are ahead.
Gameplan:
Entry :
# Since the stock is making a lower weekly high for 5th straight week, a rise above this week's high of 105.45 will break this pattern.
# buy above 105.5 with SL @ 90.5 {15/- risk)
Exit:
# Fall below 99 exit half qty to reduce losses rest at the SL of 90.5 { This will reduce the risk as the stock should not fall below 24th feb low if it has to move higher)
# Book profit on 1/3rd shares when stock moves to 115 and move your SL to 98.5 for the remaining 2/3rd
# Assuming 150 shares were bought, 50 shares exited at a profit of Rs 475 (9.5 per share), Sl for remaining 100 shares moves to 98.5 (7 per share). The trade becomes almost risk free with just Rs 225 at risk now (700-475), against the initial risk of 2250 (150 * 15)
# Plan to exit another 1/3rd at 140 and then trail the stop to new weekly low for the rest of the quantity.
# BOB closes the week strong. Went below 100 triggering the stops, took support at important 90-91 level and close above 100 for the week.
# The stock is in uptrend and just made a 2.5 years high in 7th feb week.
# Fundamentally PSU banks have completed the grueling NPA cycle and it seems better days in terms of higher NIMs and profitability are ahead.
Gameplan:
Entry :
# Since the stock is making a lower weekly high for 5th straight week, a rise above this week's high of 105.45 will break this pattern.
# buy above 105.5 with SL @ 90.5 {15/- risk)
Exit:
# Fall below 99 exit half qty to reduce losses rest at the SL of 90.5 { This will reduce the risk as the stock should not fall below 24th feb low if it has to move higher)
# Book profit on 1/3rd shares when stock moves to 115 and move your SL to 98.5 for the remaining 2/3rd
# Assuming 150 shares were bought, 50 shares exited at a profit of Rs 475 (9.5 per share), Sl for remaining 100 shares moves to 98.5 (7 per share). The trade becomes almost risk free with just Rs 225 at risk now (700-475), against the initial risk of 2250 (150 * 15)
# Plan to exit another 1/3rd at 140 and then trail the stop to new weekly low for the rest of the quantity.
Comment:
if Buy stop order triggered in the morning you are in the trade and the trade plan should take over now, else don't attempt to buy lower as it might stop you out before moving in your direction. The buy price has to be between 105.5 to 106 for this trade to work. For those who are still waiting put a limit buy stop order @ 105.55 / 106. The objective for a trade should be that it should start working immediately in our favour. Off course it cannot happen all the time but we should try to maximize the chances.
Comment:
The trade triggered @ 11:55 bar. The trade plan to takeover from here.
Comment:
Closed this position today @ 107 primarily due to complete loss in momentum. BOB Made 3 days low today and has been underperforming banknifty. The longer term trend is still up but since our risk was setup for short term move its prudent to close the trade when the short term trend seems stalling/reversing.