Wednesday, December 31, 2014

Last trading day of the year 2014

Headlines: Govt. withdraws EXCISE sop to Auto companies.
All news channels are indicating that Auto sector will be under pressure today.
Should I look for opportunity to Short Sell AUTO stocks today?
I want to trade liquid stocks which are priced below 500
How about TATA MOTORS? What should I do? If I think of Shorting TATA MOTORS where should I short it?

TATA MOTORS has an ATR of 13 points. From yesterdays close it is likely to move 13 points up or 13 points down. Adjust it according to todays open and add 13 points up/down.


Yesterday (30Dec-2014) TATA MOTORS made a High of 499.5, Low was 490.25 and it closed at 493.75

Today since the overall market will be looking to sell auto stocks I want to join them too. I will be most comfortable to short sell at these price levels 494.90, 497.4 and 499.40 keep stop loss of  500 and book profit/cover my shorts at these price levels 491, 486 & 481. I will avoid trading anywhere in between.




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