This is a collaborative effort between Abhishek Basumallick and Dr Hitesh Patel. The focus is on identifying short-to-medium term trends in stocks using Technofunda concepts.
The core is technical analysis with an overlay of fundamentals where we look only at fundamentally strong companies for technical chart patterns and breakouts. Transactions will be frequent. This is basically meant for those who have a short-to-medium term time horizon. It requires a hands-on approach to the market.
All communication will be on email only. There will be no whatsapp / telegram/ sms communication. All emails will be sent after market hours. Only in exceptional circumstances communication may be sent during market hours.
It is a long-only strategy. All the ideas recommended would be BUY recommendations but if and when we spot an opportunity of a breakdown/reversal in any stock we would bring it to your notice only as a possibility and not as a recommendation.
The companies recommended will be companies with decent fundamentals and high liquidity.
The time frame for the given trade will be clearly mentioned along with the recommendation. e.g short term means few days to few weeks, medium-term means few weeks to few months and long term for a few months to more than that.
Ideal allocation to Technofunda trading in the overall portfolio should not exceed 30-40% of total portfolio value. One can gradually begin with smaller sums and get enough confidence to bet higher amounts gradually.
We would endeavour to recommend stocks as and when we come across good trade setups and because of that there will be no fixed frequency of recommendations.
A minimum of 12 recommendations would be provided but the number is likely to be exceeded provided markets remain good.
We would clearly mention the course of action which includes buy/accumulate in a price range, stop loss and targets in each recommendation. Whenever targets are achieved or sometimes slightly before that happens, it would be advisable to book atleast partial if not full profits.
Along with technical set up, a brief write up about the fundamentals and possible triggers would be provided with the recommendation.
The recommendations are for delivery based trading on the given time frames, but if someone wants to buy in futures or options, he/she can do so at his/her own risk.
Investors/traders do not need to trade each and every recommendation made. They can pick and choose according to their comfort levels based on conviction and time frame mindset.