CMP 53 BSE 17923
- IVRCL, as we all know has performed stupendously in the past two months and has risen from lows of 27.1 (on 29/12/2011) to 62.35 (on 14/2/2012) brfore correcting to CMP 53.
- At CMP 53 it is very close to a strong support zone of 49 - 52.
- In case it breaks 52 on a closing basis, it could consolidate in the 49 - 52 range for a while.
- A break below 49 could take it all the way down to 43, but I really don't see this happenning in a hurry barring, of course, a drastic Macro market reversal, in which case, it would slice through all the aforesaid levels.
- In my opinion, we should look upon the ongoing correction in high beta interest rate sensitives as a 'cautious buying opportunity' particularly for those who missed out on the earlier leg of the upmove.
- My suggestion to long term money would be to enter in phases eg buy some at CMP 53 and add more in the 49-52 range. Add more in the 43 - 49 range at say, all 7% dips or so.
- What I have painted above is indeed a worst case scenario in the eventuality of a major Market trend reversal due to unforseen geopolitical events or other events which negatively impact global risk appetite. Hopefully this would not happen and the uptrend in the broader Markets will resume again. But, nevertheless, caution is a better virtue than repentance.
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