My stock pick for this week. Vijaya Bank weekly chart shows a strong bullish divergence on both macd-histogram and macd lines & is now holding range in the sweet zone between EMA's. Impulse is green. Force index is showing strength.
Daily chart has given a peak on macd-h & from there had a retracement to value zone. Now it is consolidating at the value zone. Force Index is not showing any direction. A re-test to previous high's likely.
My entry on this scrip is at Rs. 27.55 with a Stop of Rs. 25.95 and a target of Rs. 32.00.
This pick will be traded in our notional account. Our risk on this trade is Rs. 1.55 plus commision. Total risk allowed in our Rs. 1,00,000 account capital is Rs. 2000 @ 2% of our capital.
Based on this we get to trade 1290 shares, but taking into account the commisions @ Rs. 0.40 per share, our risk per share is 1.95. Hence, we are allowed to buy 1025 shares. To round it off, we are buying 1000 shares, stop market on monday.
Traders can easily manage their risk and returns in a better manner by keeping themselves well updated with stock market movements. They can take help from posts like these as well. For recommendations of trading pattern service providers like epic research can help.
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