Indian stock market - Swing Trading

One of the favourite stock of d-street in 2017 and 2018 was HEG. this stock zoomed 1127% in 2017 . the company is a graphite electrode manufacturer . no matter , which news plays out , price factors out everything. Hence the saying reasons can wait , price wont . If one analyses , the price history of HEG from 2009 to 2019 . for about 8 years , the stock from 2009 to early 2017 , the stock price was in the range of rs 420 to rs. 110. The stock started its upward movement from mid 2017 and reached its zenith in the month of October 2018 to rs. 4955 . the bulls had a fantastic ride , only to dump latter ( probably ) . As of may 31 , the stock closed at 1730. The take , is how to ride this type of stocks , what are the risks , what would be suitable entry and exit levels , how to find these stocks . with the benefit of hindsight and other stock analysis ; these are some inferences - How to find these stocks First characteristic is that , these stock remain in a range for a

For every trader/investor in the stock market , the first challenge is to identify the entry and exit levels, with a proper analysis of risk. 2nd challenge is executing the decisions , without being influenced by emotions while on trading screen , others opinions etc. Its true that buy right & sit tight approach is perfect . however , when one uses support and resistance for entry or exit , probability of higher returns become more pronounced. Timing is very important in stock market . there are many approaches to identify support and resistance based on technicals and others . two important approach to identify SUPPORT AND RESISTANCE are based on ma ( moving average ) and price action. Each have their own pros and cons. 1. Moving average Pros -    mostly ma levels are obeyed by non volatile stocks under normal conditions Cons - not applicable in volatile stocks illustrations - Bajfinance for period 2017 to may 2019 The 50 ma on weekly cha

The previous calendar year of 2018 was too volatile . nifty began with the level of 10531 and made a high of 11760 , but this was unsustainable and selling pressure brought the index down to the level of 10862 by the end of 2018. The annual return on the index was 3.2% ( approx ) i.e. about 350 points . major stock market related events of 2018 were - pnb scam , ilfs default and trade tensions. The calendar year 2019 started with levels around 10880 and nifty is currently trading at 11950 as of may 30 , 2019 . which is gain of about 1050 points . is there any further room for extra stretch ? The answer as obv ious , depends on many factors . the return of bjp government in centre is a major event of 2019 . Reasons to be bullish - earning growth , good Q1 result this fiscal , good monsoon Reasons to be bearish - slowdown in global economy , high valuation of nifty 50 firms overall , pessimistic forecast from IMF on overall economy of the world , volatility Overall If al