BraViSa TempleTree-India Market Calls
- Thread starter d_s_ramesh
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ABB has a free float of close to 48% on its outstanding capital. It is here that the churning is going to take place. Promoters increasing stake by 20% will reduce free float to that extent. This will mean that the stocks weight age on the index will get reduced substantially.
Of course institutions will not sell out for less when they already have the offer price quoted. But, lets keep in mind that they have got in at low price. It is the retail market which is going to jump in and out using this news. How far each one benefits depends upon their shrewdness.
The price of 860 which you have paid for this stock and the buy back price of 900 gives a difference on 40 per share. From this if we deduct commissions, the left over is just above 3% of your investment. It is a decent return on Investment for the 3 months period which the money is going to be locked.
But let me tell some thing here, suppose your exposure in this stock has a substantial amount like anything above 50 shares. That much money invested in other different avenues in the present market conditions can get you on an average 3 times of what this stock is going to give (bare minimum).
The way they have announced this buy back scheme is rising suspicion. The price move on the stock shows it clearly, there has been utter chaos in the market yesterday in short covering. It is because of panic to cover shorts that this price escalation has come in. Once all the shorts are covered, smart money will be off from this stock. It is once bitten twice shy, traders have been squeezed out of this stock, caught unawares. Gaining back their confidence will take a lot of time.
Even this clearly shows on the charts, it has taken one month for the bears to get the stock to the price which it was in, prior to the announcement, which the news has covered back in one day. This is crushing of individual confidence.
We do not have any position in this stock, we are giving our opinions unbiased. Once we become a community, other persons loss is ours too. Anyway it depends on individual decision making process and withholding capacity about continuing long position on this stock.
Putting us into this situation, we would find a right opportunity to exit and take a better stock to trade.
Of course institutions will not sell out for less when they already have the offer price quoted. But, lets keep in mind that they have got in at low price. It is the retail market which is going to jump in and out using this news. How far each one benefits depends upon their shrewdness.
The price of 860 which you have paid for this stock and the buy back price of 900 gives a difference on 40 per share. From this if we deduct commissions, the left over is just above 3% of your investment. It is a decent return on Investment for the 3 months period which the money is going to be locked.
But let me tell some thing here, suppose your exposure in this stock has a substantial amount like anything above 50 shares. That much money invested in other different avenues in the present market conditions can get you on an average 3 times of what this stock is going to give (bare minimum).
The way they have announced this buy back scheme is rising suspicion. The price move on the stock shows it clearly, there has been utter chaos in the market yesterday in short covering. It is because of panic to cover shorts that this price escalation has come in. Once all the shorts are covered, smart money will be off from this stock. It is once bitten twice shy, traders have been squeezed out of this stock, caught unawares. Gaining back their confidence will take a lot of time.
Even this clearly shows on the charts, it has taken one month for the bears to get the stock to the price which it was in, prior to the announcement, which the news has covered back in one day. This is crushing of individual confidence.
We do not have any position in this stock, we are giving our opinions unbiased. Once we become a community, other persons loss is ours too. Anyway it depends on individual decision making process and withholding capacity about continuing long position on this stock.
Putting us into this situation, we would find a right opportunity to exit and take a better stock to trade.
Thanks for the wonderful explanation. Now I have understood fully. You have good hold and grip when you do analysis of a stock. How can I be expert like you? Although I have completed my CFA from ICFAI but that's not enough.
You also said that we can earn 3 times the money in 3 months. Are there any stocks in the market? I don't see nifty trading above 5500 in the next 3 months. Europe is creating problems for the world. Dow Jones is falling everyday, looks like it has topped up. so index stocks won't give that return. Can you quote 2-3 stocks?
NIFTY indecision sets in.
NIFTY closed a shade higher compared to previous close, it had a volatile session. 5100 holds resistance, but today a false attempt was made to breach 5100, which was not successful. At higher levels it sucked in weak long trades and turned bearish again.
Price is oscillating between EMAs (Sweet zone) while the market is trending on weekly, daily along with hourly charts. We had a short re-entry after covering our existing shorts, with a 60 points gain. We are giving the very simple SAR system here. It does not need much work or many indicators. Whereas it can still give a decent return on investment.
One main aspect of trading SAR system is the discipline. These system will be in the market most of the time, hence would face high givebacks and whipsaws. The advantage of the SAR system is the ability to bring in the highest returns when the market is trending. The patience of holding with whipsaw trades pays back in trending markets
Hold on to short trade on the NIFTY with the 5140 stop, these are the last bar statistics for NIFTY today.
Happy trading.
NIFTY closed a shade higher compared to previous close, it had a volatile session. 5100 holds resistance, but today a false attempt was made to breach 5100, which was not successful. At higher levels it sucked in weak long trades and turned bearish again.
Price is oscillating between EMAs (Sweet zone) while the market is trending on weekly, daily along with hourly charts. We had a short re-entry after covering our existing shorts, with a 60 points gain. We are giving the very simple SAR system here. It does not need much work or many indicators. Whereas it can still give a decent return on investment.
One main aspect of trading SAR system is the discipline. These system will be in the market most of the time, hence would face high givebacks and whipsaws. The advantage of the SAR system is the ability to bring in the highest returns when the market is trending. The patience of holding with whipsaw trades pays back in trending markets
Hold on to short trade on the NIFTY with the 5140 stop, these are the last bar statistics for NIFTY today.
Happy trading.
Where to go???
Neither NIFTY nor any other sectors are in any direction. There is total indecision in the market. Of the total 10 Broad Sector any economy is divided into, today there is one amazing pattern which clearly indicates the mood of the market. Guess what? 5 of them closed positive and the rest 5 closed negative, both side the gain loss was below 1%.
The Leading Sector today is ENERGY, Sole gains from ONGC has pulled up this Index. The leader on the fall is CONSUMER SERVICES, where MEDIA stocks pulled down.
The strongest industry was Telephone Cables, STRTECH leads with a close to 6% gains and the Weakest was Mining Minerals. Broad based weakness from all the Index participants has caused a strong weakness.
Neither NIFTY nor any other sectors are in any direction. There is total indecision in the market. Of the total 10 Broad Sector any economy is divided into, today there is one amazing pattern which clearly indicates the mood of the market. Guess what? 5 of them closed positive and the rest 5 closed negative, both side the gain loss was below 1%.
The Leading Sector today is ENERGY, Sole gains from ONGC has pulled up this Index. The leader on the fall is CONSUMER SERVICES, where MEDIA stocks pulled down.
The strongest industry was Telephone Cables, STRTECH leads with a close to 6% gains and the Weakest was Mining Minerals. Broad based weakness from all the Index participants has caused a strong weakness.
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