CMP 95.5 BSE 17361
- 99 closing basis was a good support for the scrip and had not been violated since 14/2/2012; however, the same was decisively breached on the downside on 19/3/2012 when the scrip closed at 91.6.
- The above signals a little weakness in the short term trend. Normally, I would have plonked for 90 closing basis as an 'excellent support' since the same has not been violated since 8/2/2012, but because of the volatile times that we seem to live in, I would say that 90 closing basis is a 'good support but not inviolable'. The Charts, too, don't seem to indicate overbearing strength in the very short term. The huge trading froth also means that long term investors have to navigate with care.
- Having said the above, I would hasten to add that the long term Charts look good and Fundamentally too, the Stock needs to be picked up by long term investors for their Portfolio.
- Short point is that make your first entry around 90 levels and average out on dips thereafter. The Stock is not likely to go below 75 closing basis even in a worst case scenario. Hold long term to reap big time.
Sir a good report. but i welcome a note from you on the recent pledging and share sale news.keen to hear from you
ReplyDeleteratheesh@karvy.com
Yes Ratheesh, the news per se need not be neagtive, there could be genuine reasons for the sale. Let us await any clarifications from the Mgmt. if they so choose. Anyway this is not the time to chase prices for the scrip. One should buy in at lower levels only.
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