Category: Market Commentary

No Logic: “Just Buy, Buy and more Buy.” Absurd.

Rocket Trades

Question: Why would you “INVEST” in a Mutual Fund Scheme, what is your prime objective ⁉

Answer: Of course for Better Returns.

And, Hopefully, you are aware of the fact that in Mutual Fund Schemes, Invest means “BUY”.

Which means, IF Market is going up you will get Good, Better, Best inflation adjusted Returns.

God forbid, but, by chance IF Market crashes during YOUR Goal Year / Period just like it did in March 2020 then what will be your situation, what will happen to your Goal.

Did you ever think about that ⁉

Even did your Mutual Fund Distributor &/or Advisor told you about Plan “B.”

Case Study: Grave Situation

Mr. Rahul had invested in a Mutual Fund Scheme at 9000 NIFTY50 Levels during March 2017; that is just after BJP’s big win in UP Elections. Mind You, that was all time high of Market, back then.

However, GST was on its way (officially lunched on 1st July 2017) and Market had very well recovered from triple shocks namely Surgical Strike, Demonetization and Trump Wins the American Presidency, all were unexpected and sudden.

Till February 2020, Mr. Rahul was steadily getting good inflation adjusted returns even after all the uncertainty generated out of Surgical Strike Two, General Elections of 2019 and issues like JET Airways defund, Revocation of Article 370, etc.

Then, came the Master Event – Covid-19. Which driven out Market from the cliff like anything.

And because of that his returns are back to “ZERO” and only now at 18000 NIFTY50 Levels, he is getting near about 💯% returns.

At this stage, Investments are in Fixed Deposits, Gold, Land & Property looked much better.

In other words, Your Mutual Fund investment is tied up to NIFTY50 just like of Mr. Rahul’s.

If that is the case, then, why not just do Index ETF either in Bulk and/or via SIP route on regular basis; Why to take unnecessary Market risk by investing in Individual Stocks even via Mutual Funds route.

If You do so then will have following benefits,

  • Cost Saving: ETF Managers are charging lesser Fee compare to Active Fund Managers.
  • Crystal Clear Risk: Index can not go to Zero. There is limit How much Index could fall.
  • Peace of Mind: Researching, Comparing ETF Returns are easy. Better diversification.
  • Backing of Exchange / Regulatory Body: Feeding out Weaker Stocks, adding-up Stronger Stocks to support Market from the lower levels.

Mutual Fund Schemes are not giving all of this in a way you must get.

But, again you will not be having following Benefits,

  • You can not do Short Sell. Which means Participation in Down Trend is Ruled Out.
  • You can not withdraw Funds for fear of Losing out on Potential Reward or Exit Loads.
  • Your Returns are limited. In a sense, Mutual Fund Units never become Multiple bagger.
    • TATAPOWER become 5 Times in 12 Months
    • TATAMOTORS generated 3 Times Returns in 12 months
TATAPOWER: ₹3,84,000/- profit per lot basis‼
TATAMOTORS: ₹2,99,000/- Profit per lot ‼️

There is a Option: Pillars’ Strategy.

If you give us 36 months, and during the period do exactly as updated on your WhatsApp then without a doubt YOUR Original Capital of ₹10,00,000/- can easily be ₹30,00,0000.

We just need 12 to 15 months but taking approach of Under Promise Over Delivery and/or Principle of Conservatives.

Your Standard Market Risk remains 20% for 100% Reward in 12 Months. Our Working Motto. 🙂🙏🏽

Need more help?

Chat on WhatsApp

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

SBILIFE, BRITANNIA, APOLLOTYRE, ESCORTS, NTPC, TATAMOTORS, ASIANPAINT, NTPC, IRCTC = Profit ‼

Rocket Trades

Quarterly Performance – July August September of 2021

During this quarter NIFTY50 moved up 2000pts – and this was one-way rally. No Correction, No Pullback, even after Covid-19, China Uncertainty. Nothing.

Mind you, every single point above 16000 was an all time high.

Here are the Stats: 1st July NIFTY50 closed at 15680 and on 30 September NIFTY50 closed at 17618, highest point was 17947

Back then lots of worries surrounded the market like Historically RICH Valuations, Global Uncertainty including China Crack Down on Internet Businesses and impending Default of Evergrande.

Above mentioned development were making us uncomfortable because on one hand NSE was at New High almost every day and on other hand Global Markets were sending negative feelings.

But, then we experienced the true power of Pillars’ Strategy – “STOP-LOSS” our Plan “B”.

Executive Summary:

  • Losses Booked
    • ESCORTS: Short Sell Call
    • TATAMOTORS: BUY Call
    • NTPC: Short Sell Call
    • IRCTC: Short Sell
  • Profitable Calls were, 🎉
    • SBILIFE: BUY Call
    • BRITANNIA: Short Sell Call
    • NTPC: BUY Call
    • APOLLOTYRE: Short Sell Call
    • ASIANPAINT: BUY Call
  • Missed Profits 😢
    • SBILIFE: Early Exit – Rotated Funds to ICICIGI @ 1050 – After that HIT 1200+.
    • FEDERALBNK: Missed 50000+ Profit per lot basis by 15paisa – thin margin.
    • MCDOWELL-N: Missed 2,00,000/- Profit per lot basis.

Carry Forward Positions to December Quarter are “ICICIGI, PETRONET, CHOLAFIN”

Positions Closed this Quarter which were carried forwarded: TATAPOWER

Upon counting all the Profits & Losses Booked during the Period: Net Profit ₹161500/-

Counted Per lot basis. Excluding Open Positions’ MTM, Brokerages, Government Taxes.

“ENTRY”

“EXIT”

“OPEN”

January February March 2021

1st Quarter of 2021

BAJAJ-AUTO, ASIANPAINT, BIOCON, SBIN = Profit ‼️

April May June 2021

2nd Quarter of 2021

KOTAKBANK, TATAPOWER, NATIONALUM, ZEEL, HINDPETRO, PEL = Profit ‼

Conclusion:

To a member of 💯% Club following performance has been achieved in the Nine months of 2021.

  • First Quarter: ₹1,53,000/-
  • Second Quarter: ₹1,63,000/-
  • Third Quarter: ₹1,61,500/-

IRCTC: Though, comes in last Quarter but count in this Quarter itself. And with 120pts Loss. That is the Highest. Only one Member has exit around 4080 levels. Rest all exit in range of 4020 to 4040.

All this by using 6lac Capital – that is Client’s Core Capital.

All these on One Lot basis and after adjusting for all the losses.

80% Return on Investment in 9 months. We have three more months to go.

Now, 6lac + ₹4,77,000/- Booked Profit + Positive MTM of ICICIGI, PETRONET, CHOLAFIN.

Need more help?

Chat on WhatsApp

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

“Agni Pariksha”: 9 months’ of NIFTY Futures‼️

Rocket Trades1 Comment

NIFTY50 had taken-out “FOUR” round figures in last 9 Months; earlier this used to happen in 3 to 7 Years’ time period. First Round Figure was 14000 level which was taken out in January 2021 to now knocking at 18000 levels in September 2021.

Therefore, like many others, we also had that feeling of missing-out from this once-in-life-time Short Selling opportunity at each subsequent new High. For example, when Market first taken out 14000 then it looked like GOOD time to Sell, when taken out 15000 then BETTER Time, when taken out 16000, 17000 then BEST Time, but now when trading near 18000 levels…is it right time to sell or still wait???

Reasons were many to go Short Sell like Historical High PE Ratio, Delta Variant, Underperformance of Banking Stocks, China Crack Down on Internet Businesses to Evergrande and many more in between. But, Unlike Others, we didn’t carried away, rather restrained and stick to our discipline.

AND/OR

Similarly, greed of Buying at every dip was always there but we kept that too on side lines “AND” willingly ignore all those NIFTY50 (easy money left-out-feeling) trades at mouthwatering levels.

Because our policy is very simple – “NO TRADE WITHOUT STOP-LOSS”.

Therefore, we chose difficult path filled with Patience for ourselves.

We welcome hard hitting Questions…

Question: You might had been afraid, and that is why You had not advise any NIFTY Futures’ Call in last 9 Months. Your job is to give Calls. Give Calls, why justifying your inaction via this Article… 🤔

Answer: You are partly right, partly wrong. Please consider following Points.

  • Agreed. Our Job is to advise Trading Calls. But, not out of compulsion and/or for the sake of it.

  • We had been active in Market for every single day in last 9 months and before that too. We always had Trading positions in Stock Futures and via NIFTY50 Market Commentary, and all that without worrying about prevailing NIFTY levels. Therefore, no question of “FEAR”.

  • We advise trading calls (including NIFTY, BANKNIFTY) with crystal clear Stop-losses, only.

And, that is where we get afraid and therefore no action. Our Primary Reason of Inaction.

Exit strategy is a must as back-up plan in case we are wrong in our Market Assessment.

Hopefully, now it clear before you that why you are partly right and partly wrong.

YES, back then, we were afraid but reasons are different.

Otherwise, Pillars’ Strategy NIFTY Analysis has been 💯% spot-on right, each and every time.

Herewith attaching the proof which nobody can deny as this was shared with all in real time.

By seeing, NIFTY50 image itself you should recall our this May 2021 update.

And, ofcourse Stoploss is clearly mentioned thereof.

Click on Question to read our reply…👆

Patience of Pillars’ Strategy.👇

See attached WhatsApp Screenshot. This is most important Update because of two reasons,

▪️ First: after this update, NIFTY50 had taken out two Round Figures – 16000, 17000 and traded near 18000.

▪️ Second: we neither modify any part thereof nor Added any additional details in last two months. That is Complete Update in one go.

At every major level (round figure), we were knowing exactly what should be done but still we didn’t only because of our SL Policy.

Three Takeaways:

First and Foremost: We choose to play “SAFE“.

We had clearly mentioned that NIFTY50 is expected to be remain Bullish Till September End – that is 55 days, well in advance, explained with precise reason and logic.

Even then did not advise any Trade in NIFTY (BANKNIFTY) Futures.

Why ⁉️

Because, this is all momentum driven. We wanted to initiate Entry only on Correction which didn’t come during all those 55 Days. Taking Entry at Corrections improve Risk Reward Ratio.

Secondly: We wanted to repeat the “PATTERN“.

If suppose there was a correction of 700 to 1500pts even then our preference was Stock Futures. That is why mentioned early block-buster Calls like TATAMOTORS, TATAPOWER in 6th August WhatsApp Screenshot – both were advised on respective Market Corrections only.

TATAMOTORS: on 600pts single day correction in December 2020

TATAPOWER: During April 2021 when NIFTY50 made High @ 15431 in March 2021 and gave near about 1300pts Correction by 3rd Week in April 2021.

Purely because expected Reward is way too high compared to risk we are taking-in. And, as you know rest is the History.

Third and last One: Giving “Call without Stop-loss” is not our cup of Tea (Coffee / Drink) or Way of Working at Rocket Trades.

That is why we chose to miss February 2020 Market Top Short Sell and March 2020 Bottom BUY.

You may think if Pillars’ Strategy was so sure about the upcoming Bullish-ness during August September 2021 period then you could have plan for the average at the expected Corrections also.

Whereas, We didn’t because we had no EXIT level in case if we are proven wrong in our Market Assessment. Risk was way higher in this case.

Our Consistency of 9 Months.👇

Only 9 messages in 9 Months exclusively about NIFTY50. However, no call advised in Indices.

None were advised in Segments like Options, Penny Stocks, Equity and/or Intraday.

Members of 100% Club had traded only in Stock Futures.

Sherlock Holmes: When you have eliminated the impossible, whatever remains, however improbable, must be the truth.

For us, that impossible is nothing but the Stop-loss.

No SL, “SO”, No Call – You Know My Methods. 🙏🙂

Need more help?

Chat on WhatsApp

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