AnandJ said:
Hi Amit
How are you? I need help of seniors like you, Saint, Ravi T and others to check if my current position (i.e Hold for the next few months atleast) is fine. Pl. advise.
I have exposures in the following stocks (most of them Index stocks) and getting hammered heavily in every session
. Please suggest if it is worth to hold to my position or cut losses.
1. Bharati Teleservices - Ent @ 337.00, CMP 312.45
2. FDC - Ent @ 52.00, CMP 46.10
3. Hindalco - Ent @ 147.80, CMP 126.90
4. Tate tele (Mah) - Ent @ 29.50, CMP 28.40
5. ITC - Ent @ 133.00, CMP 120.35
6. Sterlite Optics - Ent @ 111.00, CMP 90.00
7. Tata Motors - Ent @ 555.00, CMP 506.00
8. Tisco - Ent @ 406.50, CMP 362.60
I am at a loss in every sense and at cross roads whether to hold for this correction ??? to getover or cut my losses. Would be grateful if you could guide me. Thank You.......Anand
Hi Anand, yes there is a lot of pain for now, but of your scrips those well placed fundamentally will do fine looking at your time horizon.
With Bharti as in several other great counters, it would be futile to go looking at charts. They have been subject to heavy profit booking and may have breached important supports, but will be picked up fast at these lower levels once the market shapes up.
As the players do keep an eye on the techs, regardless, Bharti is safe above 303. Watch for this level in case of a sharp fall. At these levels it would be quite under valued and should bounce back. To the up, past 322, 337 is the mark to cross for an upside.
FDC is in a range bound prolonged sidewards correction with no visible trend. It has several supports at 42-45 for now. 40 is the danger level but has bounced off here in the past too. Be catious here. Above, 48-49 are the levels to cross and past this, at your entry, I suggest you exit this one and move on to something that's trending.
Hindalco is rather similar. Above 130-135 you may see it warming up, and when it does close in on your entry, it should be gathering pace to the up. This does appear distant for now. Below yesterday's close at 127, the supports are good at 122-125. Watch it below this.
Tata Tele is one of those that tests one's nerves. There is every likelihood you would see your price soon enough. Exit this if you like, again to a trending space. Be cautious below 25-26 for now.
ITC has trapped many players following the split. The trend which was in anticipation of the split would have run into density in the period preceding the split. So it's no surprise that this has happened post split. I had pointed to this in several queries on ITC. However, this is a front liner and a routine inclusion in most portfolios. Be with it, you would be fine in the mid to long term, if not earlier. 117-120 is firm support area so watch this.
Sterlite is undergoing correction after the runaway climb. I would be cautious below 87. It has to pass 95-100-105 for a recovery which seems distant for now. Don't wait for it below 85-87, else you'll be in for a longish spell. Watch for an upside in the short term, and if the volume is good on the rise, trail stop above 95.
Tata Motors and Tisco are the ones you have a problem with.
The recent rally in TataMot was merely a technical one and has trapped many unwary investors. The main move was sideways, and the upside was part of the correction. Hold for now and wait it out if your exposure is significant. The loss certainly would be.
Tisco was looking good until it hit the right shoulder level of a H&S from several months ago, and reacted badly. The entire steel sector has under performed including Tisco even though this is the best play in the sector. 340-350 is the crucial area of support and may not be tested in a hurry. It's another bluechip portfolio scrip, but for now it's your call. A close above 390 will set it up.
All the best.
