52 week highs and all time highs strategy

Nureca chart put up shows massive investor wealth destruction especially those who bought near the top of 2000 levels. On GMMA chart, a clear cut double top was visible at 2000 and pattern was confirmed once price broke below 1400. Target for pattern was 800. But seems stock price is falling into a bottomless pit with current levels well below 400.

Here too the post IPO story is typical. IPO Price was 400, but market craziness aided its rally to go up to 2000 levels before the cookie started crumbling. The Covid times helped this company with higher sales of commodity products like Pulse oxymeter, BP instruments etc… There are loads of companies making these kind of products and there is no moat in this line of business. One just needs to check on e commberce websites like amazon, flipkart etc to get an idea about the range of products available for this kind of products…

Key learning is to avoid getting sucked into hot IPOs post listing especially during IPO frenzied markets… This is one pattern that keeps on repeating every few years.

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@hitesh2710 Sir, Please advise on the chart of Sunflag Iron and Industries as it is trading at 52 week as well as all time high levels.
Previous high of Rs 130 has been broken with volumes…can we call it as a break out

Further, Company has also recently received arbitration award of Rs 900 Cr…Company has CWIP of around Rs 450 Cr likely to be commissioned in next 6 to 9 months and hence if it is a break out then it fundamentally in can be sustainable.

@VALUE2017

Sunflag Iron has broken out of a good rounding bottom pattern and in the process has cleared its previous all time highs. The beauty of rounding bottom patterns is that while going up the stock price goes up in a calibrated manner, digesting selling pressure from time to time of sellers trapped at each level. And on breaking out above the top of rounding bottom, most of the selling is absorbed, and hence upmoves can provide good quick upsides.

Usually targets are calculated by calculating the distance of rounding bottom from top to bottom and adding to breakout level which is the top. Since rounding bottoms take a long time to form, achieving targets can also take time and hence one has to be patient. And another aspect to consider is sometimes stocks correct from exact top of rounding bottom, undergo slight retracement and form a handle like pattern to finish a cup and handle pattern.

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PNB housing update.

Stock price had reached swing high of 600 in most recent upmove and corrected from there to post swing low of 525 and on the back of good results today, went up and closed at 556, having made an intraday high of 562.

Interesting to note a very classical rounding bottom formation which has a top at 925 and low at 311. Post its lows, it started moving up and the best possible entry point was at dotted green line which was early stage of rounding bottom, where typically stock price is well above 200 dema, and 200 dema is starting to trend up and stock price is above important pivots of 460. After rallying from 460, it crossed an important previous top at 533, hit a swing just above it at 543 and corrected to take support at previous resistance region of 460. It started a fresh upmove from here and took out the swing high of 542 and went on to hit a high of 600 and corrected and took support at area of previous resistance of 533. (usually it is plus or minus a few rupees) It seems to have turned up from this region and we need to see how it behaves now onwards. Most important feature has been the positive response to reasonably good results.

Marked on chart is a possible resistance zone between dotted red lines and possible aspirational targets marked in dotted blue lines, above 600.

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MAHINDRA & MAHINDRA

As already mention stock break 52w High and auto index is trending and as expect move and stock made high around 1366 and currently again stock trading in narrow range 1200 to 1350 range once crossed the high 1366 and sustain above it then next level to test 1500 1550 1600 , Also Q3FY23 Maruti result & Bajaj auto result we see margin improvement so coming quarter looking good for auto if no any external ( global ) issue arise
Disc: Now not holding this