I lost shorting today. Can the experts here please analyse the chart & guide us in terms of who could have bought it, is it short squeeze? How to predict or identify these reversals?
Nobody knows but it could’ve been people who sold a day or two earlier.
SHAASTRA SECURITIES TRADING PRIVATE LIMITED bought 1,94,27,036 for 97.07 & sold same for 97.14
See “bulk deal” in https://www.nseindia.com/products/content/all_daily_reports.htm
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Well, during the trading session it’s hard to differentiate between real buying vs. short covering. You have to rely on the technicals such as momentum, volatility and supports/resistances. But post-market hours, looking at the delivery stats from NSE, it’s clear that the rally was driven by short covering.
The delivery % shows what percentage of people took the positions home with the expectations that the prices will rise and since 6% is hardly anything, it can be safely assumed that the buying today was driven by short covering.
Hope this helps…
Neha (www.VRDNation.com)
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dear @Neostar,
when a stock falls beyond its mass there happens a DEAD CAT BOUNCE and short covering happens for short period of time… that doesn’t mean that current prevailing trend has been changed but it means people who are short on this counter from 140 levels want to take some money from table .
secondly , never trade in stock markets from 09:15 to 9:20 , 1200 to 1330 and 1500 to 1530 hrs as during these hours there will be lot of unwanted noise with less volume which often leads to flush money of small time trades…
Thirdly , Personally i Bought 10 lots of PNB at 94.5 and sold at 99.5 after seeing the ADX crossover and shifting of sellers to buyers…
so observe keenly… be patience… find a strategy which suits your trading style and risk appetite.
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Was all the shorts built up during today or were they got carried forward from previous days? I am told its not possible to carry shorts in spot market from previous days. Are there still ways people are able to carry forward shorts in spot market?
Shorts can only be carried in the derivative segment, not the spot market. But remember that the futures and spot prices go hand in hand- so if the futures prices are going up due to short covering, the spot price will automatically come up because the arbitrage opportunity will arise due to any price differential. A little complicated to explain in a single post but hope this helps…
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actual buying happens in cash market , future market just follows its underlying asset.
Any resource for me to learn more about how to identify this?
this post itself is a resource bro…
how ever you can buy this book… this is bible of TA
https://www.amazon.in/dp/8170947421/ref=pd_lpo_sbs_dp_ss_2/259-1113909-5415651?pf_rd_m=A1VBAL9TL5WCBF&pf_rd_s=lpo-top-stripe&pf_rd_r=5QS04PH91ZTA8A1YB89V&pf_rd_r=5QS04PH91ZTA8A1YB89V&pf_rd_t=201&pf_rd_p=cd818f9c-142a-4b42-ad2c-f0421857aaf5&pf_rd_p=cd818f9c-142a-4b42-ad2c-f0421857aaf5&pf_rd_i=1607962233Technical analysis of stock market BOOK
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@shithil i agree with u alll above… im also tra
ding from last 5 years…i m in profit but not much as i am working in office too… ADX crossover is a good tool… buyers v/s sellers wont give you clear picture i think… for exanple from last 3 days SBIN sellers showing more than double of buyers… still stock moving in positive side… today also i shorted SBIN, but lost the trade… here is the screen shot of todays trade …can u guide me how u select stop loss price (stoploss % from trade entry price)
I looked at the intraday charts and there was around 2 crore shares were shorted between 9.15 am to 10.45 am. Between 2.30 pm to 3.30 pm, the same number of shares were bought indicates short covering(maybe not).
In daily charts, a bull candle is formed which looks like piercing pattern (not sure someone may confirm) when compared with previous candle.
Volume of PNB is also higher comparing with previous trading sessions.
i am using ichimoku + macd over hiken ashi… i don’t make big profits but certainly loose less. you can back test it.
Trading against trend is an art. No offence meant. If I say , I took trade by seeing the buyers shift… it doesn’t mean that I relied on the only data…
I saw the volatility…
Matched it with current trend…
analysed the open,low,high… matched with my levels of entry and support,
Checked with Nifty and sector trend,
Then I entered my chosen stock which was filtered last night by my trading system…
This is how trading goes my friend… not just any random stock I pick and lose my blood money… before I make money in any script I do lots of home work. I give myself 100 reasons to why would someone at other end would sell this stock to me while Iam going to buy the same… When I get justified I execute the trade…
To come to this conclusion it takes time, patience and hardwork and a well built trading system.
People msg me saying I speak philosophy rather than giving a well cooked pie of my trading system.
My dear friend, understanding opponents psychology is itself a trading system .
That’s Art of war and art of trading!
Good day. WhatsApp : 9 1 1 6 5 5 5 6 6 9 ( do not ping me to check with your wrong proven trades .Be guinein I will reply even if it’s silly)
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My analysis may not be correct, I am learning candle stick patterns.
In daily charts it looks like, spinning top is formed indicating neutral outlook.
Multiple candle stick pattern looks like bearish engulfing pattern. But the stock is already in a down trend.
Volume of last 5 trading sessions are low.
Maybe we need to wait a little more for a bullish pattern