Vishvesh Chauhan

How Vishvesh Chauhan Predicted 17% Rally In Tata Motors: Decoding the Mind of a Super Trader

There are great trainers, and then, there are great traders who can just trade. It’s difficult to find both rolled into one.

Vishvesh Chauhan, the founder of “Chase Alpha”,  is a rare gem that fits both.

However, don’t make the mistake of putting him in the league of business channels chartists who gives you slim targets. He has the guts to go against the wave and tell something in advance that mere mortals like us cannot even think of.

It requires great confidence, and of course skills. We’ll try to dissect his mind to unravel a thing or two to become a better trader. Let’s discuss one of his trades suggested on 4 August 1920. This was not an easy time to predict market movement.

When Anil Singhvi, the doyen of the stock market, asked:

batayen vishvesh kya hai aaj?”.

There was complete silence for 4 seconds. And then he opened up.

He suggested Tata Motors. That took us by surprise. Let’s see the chart:

Tata Motors Chart

You can see how Tata Motors stock went up to 132 in a matter of 9 days till the rally got exhausted.

You got cool 17%!

Do you want anything more?

What was his logic? What he saw in the chart that newbies and novices could not see.

 #Consolidation breakout

#TataMotors was breaking the consolidation of the last 2 months. You can see the large green candle in the image at the start of August.

The breakout was supported by the unusually high volume of 25 crore stocks.

# Unwinding of Call Option

12.5 lakh shares in the call options had unwinding that day and it was followed by the price correction which made the risk-reward favourable for the stock.

#Low Risk-High Reward

Unlike novice people like me, he did not jump to buy immediately after the breakout. He waited for the price to come down to buy at the right price.

It was a pure data-driven decision price action trade without any indicator.

Pure genius. No luck, all skill.

That’s also great learning for wannabe traders who get excited just after the breakout and buy-in hurry, only to repent later. Adding a few more data in trading can give you the real edge.

 

Vikash Kumar

An investor with more than 15 years of experience in the market. I m deeply interested in positional and momentum-based trading strategies and love learning strategies and backtesting.

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