Video summary

How to Enter Stocks Before They Explode | Swing Trading Strategy Explained

Main summary

Key takeaways

Finance

Finance-focused summary (IPO-base swing trading)

Concept: “IPO basis” (IPO base breakout setup)

The presenter describes a recurring post-IPO price pattern:

  1. New listings: Stocks rise a bit initially.
  2. Deep selling + base formation: They then undergo “deep selling” and form a U-shaped base.
  3. Bullish trigger: Eventually, the stock reclaims/breaks its all-time high, which is treated as the bullish trigger for swing-trading entries.

Rationale provided

  • Many IPOs are overvalued at listing, creating heavy selling pressure.
  • Anchor lock-in for 30/60/90 days is cited as a period when selling pressure can change (notably as lock-ups end).
  • After the base forms (and results often come out), the stock can trend upward—but it becomes a “good swing trading opportunity” only after the base breaks out, because earlier buyers can still sell inside the range.

Key charting framework / step-by-step methodology

1) Scanning / watchlist construction

  • Use an IPO dashboard/database such as IPO365 (mentioned as free by “Fina(l)ly Nathan”).
  • Alternatively:
    • Scroll through IPO lists
    • Copy into TradingView
    • Use alerts/watchlists as needed

2) Entry filter / signals (TradingView indicators)

Add these EMA indicators:

  • EMA 20 (fast)
  • EMA 50 (slow)

Base breakout entry logic

  • Wait for a breakout above the IPO base / prior all-time high level.
  • Enter at/after the breakout once the base is considered resolved.

3) Risk management / exits (trailing-stop style logic)

Partial profit-taking

  • When price breaks below the 20-day EMA and closes below it, take a 20–30% partial exit.
  • The presenter emphasizes exiting by selling a portion of shares, not by “selling gains.”

Full exit / trend termination

  • If price subsequently breaks below the 50-day EMA, exit fully.

Position sizing

  • Max 10% of account value per trade
    • Example: ₹1,00,000 account → ₹10,000 max per trade

Loss limit

  • Losses cited typically 2–5%, with an explicit rule:
    • Do not take more than ~5% loss (ideally less)

4) Event handling caution

  • If a major external event creates an “anomaly” day (example referenced: an “Indo Pak” day), the presenter suggests:
    • Wait
    • Don’t overreact immediately
    • The broader technical trend often resumes

5) Profit expectations / behavioral rule

  • Target guidance: if you get 5–6%, you should consider it “lucky.”
  • Strong behavioral emphasis: “don’t be greedy.”
  • Sometimes take profits early (examples mention around ~4% after tax for full exits).

Examples of “IPO base” candidates / tickers mentioned

(Company names were mentioned rather than consistent ticker symbols. These are the explicitly referenced instruments.)

  • Acme Solar
  • Ventive Hospitality
  • ITC Hotels
  • Vishal Mega Mart
  • Sanatan Textiles (described as ~3,000 crores company)
  • Arcade (creating an IPO base and breaking out)
  • One Source Specialty Farmer
  • NTPC Green (named as “still not moving”)
  • Quality Power Electric
  • VI Energy (trying to create a base)
  • Uni (base not ready yet; alert strategy)

Additional names referenced in the ETF/index context:

  • Swiggy, Zomato, InfoEdge, Angel One, Motilal Oswal
  • Policybazaar / PB Fintech
  • Go Digit
  • IRCTC

Macro / thematic market context (ETF promotion, internet theme)

Fund launch promoted (briefly)

  • Grow Nifty India Internet ETF Fund of Fund – Direct Growth
  • Launch date: 13 June 2025
  • Ending date: 27 June 2025
  • Allotment date: 4 July (year implied 2025)
  • Minimum investment: ₹500
  • Objective: long-term capital gain appreciation

Thesis mentioned

  • Invests in internet/platform companies
  • The presenter cites the Nifty India Internet Index as having delivered “crazy returns” in recent years.

Constituent examples named (with at least two weights cited)

  • Angel One: ~4–5% weightage
  • Zomato: ~20% weightage
  • Others listed: InfoEdge, Motilal Oswal, Paytm / PB Fintech (Policybazaar), Swiggy, etc.

Key numbers and thresholds explicitly mentioned

  • Anchor lock-in: 30 / 60 / 90 days
  • Indicators: EMA 20 and EMA 50
  • Partial exit rule: sell 20–30% of shares when closing below 20-day EMA
  • Full exit: when closing below 50-day EMA
  • Position size: ≤ 10% of portfolio per trade
  • Loss cap: ≤ 5%
    • (and “actually not even five is also too much”)
  • Profit guidance: 5–6% considered good
    • sometimes take ~4% after tax
  • Performance metric claimed:
    • For Quality Power Electric, profit running at ~32% in the last 1 month (based on entering at the stated level)

Disclosures / cautions

  • Explicit disclosure: “Nothing in this video is a buy or sell recommendation.”
  • Repeated behavioral caution: don’t be greedy; follow stop-based exits.
  • Risk caution: adhere to the stated position size and loss limit.

Presenters / sources

  • Shashank Gurupa (presenter)
  • “Finally Nathan” (credited for the free IPO365 dashboard)
  • Platforms / index referenced:
    • TradingView
    • Nifty India Internet Index

Original video