Praveen’s Information Attic (Obervations, Lessons, Thoughts)

Absolutely. Charts really help us, and the market irrationality may give us opportunities. But we don’t know how long the market starts irrational.

One recent case where I got benefited.

1. On 28 Sept 2023, MCX closed at 2096. But it fell to 1916 next day low, as there’s an objection raised for the technical robustness of their Platform.
2. If someone had view of 1 year, it’s a good opportunity (as the porblem would most probably have been solved in a year)
3. at ~1926 rs, my expected returna over next 1.5 years time frame was too good and bought.

But yeah, since I did not know how long the market stays irrational, I couldn’t buy as much as I’d like. And it didn’t go below 1900, and instead it went up gradually from there.

Using technical and Funda view would be a great combo.
Technicals would help avoid downside risk (avoiding catching falling knife) and Funda would tell us if there’s value in a stock at a certain price