IRCTC Share | TATA Motors - Chart Reading - YouTube

Hello Friends, Welcome back to my channel This is Subasish

Today we'll read Charts of Tata Motors and IRCTC

I'm going to tell you after doing multi time frame analysis

We'll do discussion in detail

It will surely help those who have stock and who don't have also

The chart pattern or how to read the price If you will see all these point until the end

Then in coming time, Or even if you have other stock in your portfolio

Then you can simply analyse it and can decide whether you have to hold it or sell it

So let's see Tata motors now, It has closed near around 490 as you can see on screen

So first thing let me show you my position I have bought and hold Tata Motors since before

So first we'll go in poll holdings We'll go in Tata Motors

You must be seeing more than 500% of return I bought it a an average of 76

we'll see in charts in detail, we bought this and some other stocks

It was giving me overall profit around 69 and then since 2-3 days as nifty is falling

It has started to fell little little

So Let's see Tata Motors in detail First let's go in monthly charts

If we'll see in monthly chats then my average is somewhere around 76

That means I bought it somewhere around completely lowest point

So keep one point in mind right now, market is going somewhere around above 500 or somewhere near 490

What should we do no? First you have to identify what is your buying average price

If you are buying under 100 or 200 or 300 or you have bought around break out level

If yours is near break out level then no doubt your stop loss should be around 270-280 or below

Let me block, it would be easy It should be below it

If you have bought it for break out, If you have bought news based after market is gone already

then I'll tell you where the stop loss should be and what should be the planning

But if you'll see monthly chart in detail market was coming down continuously

then at this point you saw the price action Market is going upside

this became a big halt candle It made a big candle and then took a pause

then it waited continuously on a higher level and then gave a break out around 360 level

Whenever it gives a break out and you see a candle like this,

those who must be thinking to book profit from here, this wont come down directly

I'm telling you, you should wait little bit The reason behind this is that

those who have bought here It won't fall directly, when it comes down it finds support and then goes up

mostly the probability of making inside candle becomes so much, What happens generally is ....

Let's say market is coming down from here then it can find a support at any point and can go upside

Those who missed this rally are going to enter here

So this way it stays little volatile So market will give you sufficient time

If we would zoom in the chart here little bit Just Imagine where this much bi candle has made

If we'll see somewhere around here a big candle has made Its not that big but at least a bullish candle has made

IF this candle has made and you will see the momentum and price after it

A pouch candle has made It has come down after it definitely

but in next immediate month as I was telling you it can make inside candle

It can make hault candle It will come for selling and then goes upside

So generally similar kind of pattern has made, here also if we'll see a big candle has made

Next candle has made red and negative but it does not give too much selling pressure

Whenever there's a strong momentum, It doesn't come immediately, you'll get sufficient time to sell it

I always prefer to wait for price action to create in more smaller time frame

It has given break out in monthly time frame Then selling it immediately means missing a big opportunity

Chances are... If we'll see how to plan its target generally

Let's imagine... There was a resistance and market came down

Then here it made W pattern and went upside so there was a resistance no doubt

somewhere around from 550 to 580 This is a resistance area

But good news is that this resistance area has been tested already

If you'll see here, it has arrived already after testing here

This is the second time peak hit

After hitting second time its getting little bit Righteous

Now we should hope if it would wait 2-3 months near this point

If its waiting for 2-3 months Not 1-2 months, It should spend some more time

If it's waiting in 500-570 in 1-2 months

Then if it gives breakout then your target will be very big

Your first target will be... If you will see this gap from resistance level and will fill it

and will project over it, this will be your target And if resistance line is from here, then your biggest target

from here if we'll plot on this point similar it can be targeted in opposite way

But it should be given breakout It should be dragged in the side on this point

So for me, still TATA motors is bullish Now if it'll go down then it'll go up continuously

Just imagine, those who purchased in this break out level they'll sell only when stock will come down from it

some must have purchased here, some on 200 or 300 level

so for them, the stock has gone up very high for now, so they'll not do aggressive selling

I hope you understood this point clearly just imagine those who saw my portfolio also

I have purchased at 76 even If I'll sell it in 300 still i'll get very nice profit

So I'll hold it sufficiently Whenever you have purchased in lower price and stock has already gone

Then give it some room and time to get volatility or give some space

If it haven't become negative in smaller time frame then keep it on hold

who knows it won't go to 500 but will reach to 700-900

then you'll regret if you have sold the stock already

No doubt you would be safe in profit but no one never sells rented property

or if not today then tomorrow it is about to give rent or divident or can split in coming time

or you are about to get increment price wise if its going above your buying price

then you can wait by putting stop loss under those which are showing under he buying price

Because price action looks very good in monthly chart until now

Right now in weekly chart around 300 level it has moved 200-500 points

Some retracement is still pending then retracement can happen here in weekly chart

So let's go in daily chart now

When you found out that a big momentum comes,

Let me tell you an advance point, those who do investing listen carefully

when a big momentum comes in the stock then it goes in volatility

so what happens generally is, let's say it reached to 500

The high that occurred recently after 500 here you should start doing covered call

what happens in it is... if market goes up then you'll already have the holding and you will get profit there

If it comes down here still you'll keep getting rental income

520 and 540 call should be sorted instead you'll sell the portfolio

those who trade in less quantity they must have done aggressive trade

Let's say imagine if you traded in 500, then this is not the correct time

If you bought in 500 then chances are that it can reach up to 420 also

Because here a price action is visible in daily chart

If it would break the last swing then it can retrace little bit up to 420-440

And it weekly chart you can see one retracement is pending

Just because of the news you have entered on 500 then you have to change it before the price build

You should do identification before the breakout level, it hasn't reached 500 today

It first crossed level of 320-340, then it reached then those who purchased on level 360-380

Their stop loss should be around 260-280 Because there is so much potential in the stock

those who purchases nice quantity in 500 then they should do covered call

because still it will create little bit volatility then it can continue upside

Until and unless this price start to go below 400, it will be an alert for me

if it starts to come to 340-320 then maybe I'll think do profit booking it

Right now it can go upside on current level, keep it on hold it can get little bit pressure of selling

Other than daily basis it can reach to 420-400 also

So let's see IRCTC chart, it did very nice momentum from somewhere around 7200 level

It reached directly 6300-6400 level without giving any much aggressive retracement

And a very big aggressive retracement has happened in it

It will also create volatility now because if you'll see this much big momentum

After a big momentum in every candle length & every month, no doubt a profit booking will occur

Those you bought at the time of IPO or after that or at the break out level

It was a dream run for those, it was a very nice profit

It's not in my holding, Tata motors was in my holding as I showed you

Here if we'll see on 6400 level correction has been done together

Those who purchased it, I'm asking you again If your buying level is very below

Then you don't have to be scared about this correction

But if your buying price is very high then let's see it in weekly chart until where your plan should be

First thing if we'll see, it gave a breakout here, it waited for two weeks and then gave breakout

somewhere around 3800 is a support area for us

If you have bought after planning, that you'll not sell until it won't come below it

Then you can hold it up to here But the momentum in which it is coming

Chance are that a little more deep correction can be done

after that it can create volatility for very long time you have a nice round level i.e. 4000

If it can hold it then well and good, If it coming below that this then there is a source

Always keep in mind, from which source it's coming, there can be little more deep correction

But right after crossing 400 level, you have to be little more conscious

that there could be little more selling pressure

when you should do buying? When all these support areas are about to hit first time

Like we saw Tata motors... When resistance hit first time then there was a pressure of selling

Similarly, When we'll support hit first time then there can be pressure of buying

From 3600-4000, This is an area of buying If someone makes bullish candle on this point

On weekly or monthly chart, then you can purchase it continuously

or can put stop loss below it, those who have stock already in their portfolio

And this can continue the momentum again

You may see in the weekly chart that the support area is near around 3600

Now let's do analysis in daily chart

If we'll see in the daily chart, gap up opened and did momentum next consecutive day

Now if we'll see exactly around 4400-4300, Market has taken a pause

If it goes below it then there could be little correction you shouldn't do aggressive buying here

Let me repeat again, You should not do aggressive buying here

Because there is a sharp selling given, after that you won't be able to confirm if it's taking pause for selling

or there will be reversal together

Sharp reversal from here.... Market goes like this in very rarest case

95% times it won't move like that

If it's going upside then it'll give pull back Because this closing price, this gap created

All this is going to act like a resistance when it will go up then it'll act like resistance

If its making W pattern again and This type of recovery is happening

That mean you should purchase buying level there

or your level should be somewhere around from 4000-3600

Not in daily chart, If bullish candle forms in weekly chart only then you should buy

So now talking about IRCTC and Tata motors then acc. to me you should start doing covered call

whenever market is at all time high, you shouldn't do covered call in this case

Like in banking stocks now, Let's say ICICI or axis bank or kotak

They all are on all time high right now here you shouldn't do covered call

Because when Market is crossing on all time high, then doing covered call here is risky

when market gave a correction of 5-10% from the top that means if you'll do covered call there then

as low the market will go you'll keep getting rental income

If price is going up again, then definitely you'll get loss in covered call

but because of your holding you'll be getting profit

Because whenever there's correction of 5-10% then market takes time to cross all time high

it dropped 10%, next morning after going 20-30% up, it won't cross all time high

It will struggle first going upside, then will find resistance, then price action will create

till then covered call will keep giving you money until 3-4 months

I hope you are understanding my point when you should do covered call

And in this case 5500-5600, those who have aggressive holding, it's a nice level to do covered call

And here you can see there's a gap in closing and opening price

It can take pause of one more day until this gap will fill, so till then you can use it for covered call

So now I'll start doing covered calls in Tata motors because it has been retraced

If IRCTC would also be in my portfolio then also I would start doing covered call

I hope you are understanding this point whenever something has touched to its all time high

Don't do covered call at that time even by mistake because unnecessary you'll just waste money like that

First let it do the correction, let's say this is not correction

if 4-5% minimum correction haven't done Let's say you bought in 1000

Stock reached 4000, let it get 5-6% correct first before 4000

If it has been corrected 5%, then you can sort 500-600 point from upside after seeing round level

If this is on all time high, just one day it got red, getting only 1-2% up down

then you don't have to do covered call because stock can move upside even more

So you should give nice space to the stock

Here we'll see, from somewhere around 4000 level, there have never been a very big correction

Here also it gave break out and continued then what mistake people do is...

They start to do covered call from this level also, No doubt there won't be much big losses,

but you won't get maximum potential also to do income from the stock

I hope you are understanding my point Always try to think how to get max. profit

and trade after thinking everything logically, If something is on all time high

and it haven't got retraced, you don't have to do covered call there

It has fallen 5-10% from all time high and your buying price is very low

And you are scared if it'll get crashed or will come down,

then at least you can sort it until recovering your buying price, purchase quantity etc by continuing covered call

I hope you are understanding all these points

Still there's potential in both the stocks, It's showing little more that IRCTC

In Tata motors daily chart its fine, & in monthly chart, there was a retracement pending in IRCTC

Market always returns its average and IRCTC has gone very high

So it has to return to then min... it'll return to min Then it'll be min reversal then it'll go up

So keep this concept in mind, no stock can subtend by going up continuously

this Return comes but you have to see negative scenario

when you saw it has become this much big candle, since then you got warning in the stock

that you should avoid little bit and should've started doing covered call

I hope you are understanding all these points

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This is it for now... Thank You!