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In a market like this it becomes really dicey to find new opportunities. You will see the break outs that technical analysts keep talking about but it will be really hard to visualize the move of say more than 15-20%. This is where whole thing becomes tricky. Today we are going to discuss two opportunities….
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Last few months have been topsy-turvy for most of the pharma/chemical/tech heavy portfolios. That was because market has been rotating the sectors in fancy at breakneck speed. Often we could not catch it or if caught it then did not put the money at work on time. That is also reflected on portfolio being stagnant….
There are many ways to make money in the market. What you should focus on is how simple, replicable it is. If something is simple enough for you and can be replicated then you can take it under consideration. Now only thing remains whether it suits you temperamentally or not. There could be many simple…
Generally long consolidation and volatility contraction leads to monster moves. These moves are largely done in a month or so and by the time you enter 5th week stock starts falling. Time value of money in such trades is really high and they hardly test patience. Today we are going to talk about one such…
This is archived post of Quess Corp which we did for BNP Pro members at October end. This is just to share how we thought about the idea and how it is working out. This is not a call on stock at current prices. Stock is already up by 18% from below 400 to 470+.
Update – Stock made highs of 725. Up from 400 to 725 in last 3 months. 80%+. If you want to learn and earn – Join here.
Here is a nice looking chart of Quess. A company owned by Billionaire Prem Watsa of Fairfax (same guy who has big stake in 5Paisa and other IIFL group companies, FairChem Specialty, CSB Bank etc).
Fundamentally very sound company. Today results came out which are more than decent. Quess also owns another listed company Allsec which by the way has interesting shareholder C Mackertich in public shareholders list. C Mackertich is same company operated by Ajay Kayan (Ajay Kedia shown in Scam 1992 Web Series) and had many cases against him and recently he got acquitted. A member of bear cartel from kolkata.
Anyway, as you can see in the chart stock is just trading above dead cat bounce level of 398 made on 29 June. Trading above 50 SMA and 50 SMA is well above 200 SMA.
As you can see by two pink lines the pattern closely follows the Binet’s formula. Do not get bogged down by the fancy name of Binet, it is just old pattern we refer as snake pattern.
You can see the range of stock price getting squeezed for a month now. Last time it happened for 2.5 months and stock did 380 to 450 in no time.
Then what is the catch here?
Catch is yesterday stock broke down badly. Opened at 403.30, made high of 407.95 but low of 364. But good thing is it closed at 403.85.
So broke down but recovered by end of the day. If it did not break down yesterday it would be much better.
Very low risk entry it is offering. SL can be 390 on closing basis which does not mean wait for next day to exit. On same day if around 03:25 stock is trading at 390 or below then watch it and exit in last 2 min if it stays below 390. Because next day it might open -5% or -10% who knows given the volatility.
It can work or fail in short time. It is unlikely to test the patience.
Disclaimer: Posts on the platforms of BN are our perspective on the market. These are purely meant for learning purposes. The perspective provided should not be construed as investment advice or solicitation to trade. We may have positions in the stock mentioned. You agree to make no trade relying on the above contained information fully or partly. By using the content, you agree to these T&Cs.
There are some opportunities which are not meant to give you most return in least time. They are not optimal in that sense but they are none the less important part of whole portfolio to give it much needed stability while delivering much above market returns. One such stock that we already have is Balkrishna…
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Harshad Shantilal Mehta is a legend and his story will continue to enthrall the Indian stock market participants no matter what. A man who rose from nothing to beat even Ambani and become top Advance Tax payer in India. A man who led the assault on the foreign bank cartel which were milking the Indian…
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