My 2 Cents for 2023: Nifty Index Stocks:- Trading in a Channel
Trading in a Channel (Weekly):
Identify the stocks which are trading in a channel. These channels may not be perfect, but identify them. These stocks are with the hand of good FII’s. They take this stock gradually to the top in 3 – 5 Years. Most of the Index Stocks are with the good FII’s. Few are Not.
For example, Hindustan Unilever, Kotak Mahindra, Infy, Wipro. Its trading in a range for almost 1 Year. No FII’S has entered yet or maybe there is a fight for the position.
In this example we are considering Reliance
Reliance consolidated for almost 7 years, meanwhile NIFTY has given 150% return. That means other stocks have outperformed.
All in all identify these continuously uptrend stocks trading in the channel and try to enter at the low of the channel. And hold the stock for long time. Typically this trend will be 4 to 5 Years. Make sure to identify the age of this channel, younger the better, as it gets old, likely to go side ways or haywire, until new big player enters.
Hope it Helps…!!!
Cheers…!!
Identify the stocks which are trading in a channel. These channels may not be perfect, but identify them. These stocks are with the hand of good FII’s. They take this stock gradually to the top in 3 – 5 Years. Most of the Index Stocks are with the good FII’s. Few are Not.
For example, Hindustan Unilever, Kotak Mahindra, Infy, Wipro. Its trading in a range for almost 1 Year. No FII’S has entered yet or maybe there is a fight for the position.
In this example we are considering Reliance
Reliance consolidated for almost 7 years, meanwhile NIFTY has given 150% return. That means other stocks have outperformed.
All in all identify these continuously uptrend stocks trading in the channel and try to enter at the low of the channel. And hold the stock for long time. Typically this trend will be 4 to 5 Years. Make sure to identify the age of this channel, younger the better, as it gets old, likely to go side ways or haywire, until new big player enters.
Hope it Helps…!!!
Cheers…!!
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