Short term Investment - TCS and Amrutanjan

Amrutanjan 

Chart says it all. Amrutanjan is at strong support and one can enter for short term better benefits and expect a new high or can liquidate its position at all time high

Basics for beginners: (After Market updates)

Whenever stock is in uptrend (means price of stock going upwards), it does not goes in a straight line directly. It undergoes some correction (temporary downside after going up) as can be seen in chart. So, traders buy stock at lower levels and whenever they feel that price has surged enough and that they are satisfied with the profit and start thinking that price may collapse anytime or its a decent price to book profit, then they start selling leading to fall in price. This fall in price is called correction. Then the time comes when Price of the stock finds a support, where traders think that its a decent price to buy again. So, again upward movement continues. This is what is visible in above chart too. So, question arises, what is the decent price to enter and exit??? (means buying and selling respectively)

For that there are so many indicators and tools available readily. Market uses terms like overbought and oversold for it. I generally use Moving Averages, MACD and RSI as primary indicators and few more tools to confirm my trades. Here, Moving Average 50 is visible as support. For your understanding, I have used both type of Moving Average 50, i.e. Exponential moving average (green line) and simple moving average curve (purple line). Also, I covered the price movement with envelope(Default setting as per upper overlay indicator in chartink.com) which can give idea of resistance and good point of exit

Also, few guys generally rely on trend-lines as explained in previous post. Lets have a look at updated chart

This post was created just before market. and updating it after market. So, you can see, there is an additional candle on chart representing today's price. Stock gave 5% intra-day gains for traders. crossing 500+ within 3 hours. But there is still enough potential left in it. Though Market fall today, but Amrutanjan was rising. This is called exploring hidden opportunities even at worst times.

Hope now you understood, what is really "BUY LOW SELL HIGH" or "BUY on  every DIPS"

TCS 

Observe Blue dotted Horizontal line. It has been proved as good support in the past after every fall. Though TCS gave lower than estimate results, TCS is a strong stock and one can think of buying if it falls. And that point has come Finally. Investors can buy more to average their stocks if bought at higher price in the past and traders can also buy for short term profit from pullback. 

Disclaimer: I am an independent trader and I may or may not trade on calls I generate. The sole purpose of blog is learning and author is not responsible for loss made on trades executed on calls generated here. So take your own trade decision wisely