Stock Futures: Weapons of Mass Destruction ‼️

Why this Negative Headline…

It may be your first thought.

This is not the negative thought, but a Conclusion of last 6 Months.

Because, what all happened in Six Months (August 2021 To January 2022) has not been experienced earlier. As, you can see from the attached chart.

10000pts plus Price Action and that to be only from Highest Point To Lowest Point. Intraday Volatility is not counted. Today, all this looks just fine but every single day was unique. No running away we witnessed those volatility in real time.


Experience Helped us

We have been in Stock Market from Year 1999 and seen three major Bear Markets (2000, 2008, 2020) and numerous price corrections in between.

All these years one constant thing we have found is: PEOPLE ARE IN,

Hurry to Buy. Hurry to Sell.

This is what is weapons of mass destruction

For them No Patience, No Discipline, No Logic, No Strategy. Just about News, Events, Announcements, nothing else. However, our approach is different.

We have three Recent Examples to elaborate more on this,

First: Nasdaq listed Facebook (New Name: “Meta“)

Second: NSE Listed TORNTPHARM

Third: NSE Listed ICICIGI

First

Facebook: Lost about 238 Billion Dollar Market Capitalization is a single Day Trading. That is because of 26% Fall from the previous Day Closing on 4th Quarterly Result announcement.

In Indian Context that means Losing more than a “RELIANCE”

However, this was balanced out by Amazon, Apple and Google (Alphabet)

Even then, NASDAQ is in Bear Market. If we go by standard 20% fall from All time High definition. And, all this has happen in just 2 Months.

But question remain: Was this fall artificially Triggered ⁉️

Because of this fall in Facebook it will be out of preview of Anti-Trust Scrutiny proceedings by House Legislators. In other words bleeding in disguise for Long Term Investors.

There is no Straight Answer.

Second:

TORNTPHARM: We have given this Call on 13 December 2021 and Exited on 27 January 2022 – after holding for 33 Trading Sessions. Obviously, did Rollover to January Expiry also.

And During this period we had not seen even a single day negative closing.

All days were positive Mark to Margin irrespective of NIFTY50 general weakness. Even after Omicron driven Medical Emergency made States to go for Shut-Downs, Weekend Curfew, etc.

BUT, on 27 January 2022 because of Result Impact or something else TORNTPHARM opened 15% Gap Down thereby triggering our Stop-Loss of 2800.

But even then we did not exit until next day.

Reason was simple: initially we thought this is just an over reaction.

Today, Tomorrow Management will issue clarification / Press Release and Prices would stabilize if not recover immediately but required help from Promotors / Long Term Investors did not come as intended.

Result: Loss of ₹120000 per lot basis. 😔

But question remain: Was this fall artificially Triggered ⁉️

Agreed, Results were not that outstanding but they were not so bad either.

If our analysis was wrong then why not my Stop-Loss got triggered before.

Remember we were holding for 33 Trading Days or 45 Calendar Days.

There is no Straight Answer.

Third:

ICICIGI: This is exact similar to TORNTPHARM only thing is Stop Loss Triggered but we are still holding. Because of Four Reasons,

  • Small Lot Size
  • Best Group, Great Sector
  • Tiny Span Margin Requirement, and
  • We didn’t have any replacement Call just yet.

But question remain: Was this fall artificially Triggered ⁉️

This Stock does not participate What may happen in NIFTY50 (Stock Market). In other words, Neither Fall with Market nor show recovery with Market.

If our analysis was wrong then why had all time high at 1675 in NSE Cash upon our Entry.

Agreed, we should not be emotional with the Positions. But Remember if we can exit from TORNTPHARM ruthlessly then Exiting from ICICIGI is also not a big deal. Exit can be taken any day any time.

There is no Straight Answer.

Pillars’ Strategy Straight Answer…

We are independent, unbiased, Professional Market Analyst, therefore we always remain to answer, accountable to our Members of 💯% Club. And, followings are our Straight answers,

  • In last 6 Months (August 2021 to January 2022) as depict by attached NIFTY50 Chart Market is way to Volatile, Therefore we are giving very less number of Calls. Only 12 Trading Calls were given and Closed accordingly. Net Result: ₹170000 Including TORNTPHARM.
  • Opportunity were lost in FEDERALBNK and MCDOWELL-N. Otherwise, today situation could have much better. But, no problem as we recovered from HAVELLS same way will do for TORNTPHARM.
  • NIFTY50 Trend remains Bullish. Waiting for Reversal. There is high probability that our Next Big Profitable Call/s will be from the Short Sell Side. We just have to wait for that proper Set-up. Time is Secondary. As TORNTPHARM shown us that One Day is enough.

Most importantly, When we are available to answer your query, clear doubt, attaining Calls, replying to WhatsApp, SMS E-Mail then why to worry. Profit & Loss are part of Stock Market Trading. Have Patience, follow our Discipline, Logic, and Strategy.

IF we stay on course then Tomorrow and future will be a golden day.

Need more help?

☎ +91 9900330558, Bengaluru; Preferably during Market Hours (9am to 4:00pm).

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