Beware of Adani Ports
Every trader has a bunch of time-tested strategies that he/she deploys to generate winning trades. Seldom does it happen that one particular stock pops-up in every single strategy, pointing in the same direction. This is like a dream come true for any trader as the conviction on such trades is immense and one can bet big money on it. Such is the case with ADANI PORTS. Using the highly advanced and flexible screeners offered by TraderGuide, in its web-based software Smart Trader +, we discovered that Adani Ports appeared on a number of strategies that we consider to be very effective in delivery-based trading.
The stock first appeared on the strategy that helps us capture “Engulfing Patters” and this strategy available by default to all our registered users. It was found that a solid negative candle was being formed on the EOD chart depicting a Bearish Engulfing pattern. To further solidify the outlook, a Volume Breakout strategy was executed simultaneously, under which Adani Ports was a common name. This was proof enough that the stock had a bearish tone to it in short term.
Next, to ensure that we were in sync with the market tone on medium term as well, ADX crossover strategy was put to use. Co-incidentally, Adani Ports made it to this list as well. A negative ADX crossover is being observed in Adani Ports, thereby ensuring a negative outlook on medium term as well.
Post this, we were convinced enough that the stock may be under the grip on the bears, but taking an additional confirmation never hurt anyone. Thus, we executed an Open Interest % change strategy and found that there was a % change of more than 20% in the Jan19 expiry of Adani Ports. This was achieved through the Futures Query Builder that allows us to arrive to this decision with utter ease.
Receiving the aforementioned confirmations made us sure enough to have negative bias on Adani Ports for a short to medium term perspective. We would suggest all traders to stay cautious and trade accordingly.
Such as comprehensive research my look tiresome but it gets relatively easy with the cash and futures screeners offered by TraderGuide. Every trader is suggested visit their website and learn this amazing features from their executives, thereby staring their journey as an independent trader.
- Anand Singh Gaur
- Sunil Kothari