Such moves backed by solid announcements do a great job of altering the sentiment. All of it is well engineered.
The retail investor does not have the time or the acumen to go about finding exactly how the new set announcements are going to change his world. He relies on the media to do the thinking. The media is screaming buy, and buy he will.
I see this as a conspiracy to trap the retail investor because the quarterlies will come out with bad, maybe ugly, numbers. The TTM-EPS is going to shrink for high PE stocks, Autos, B2Bs, Capital Goods, FMCGs and probably even Banks. This may cause this rally to fail.
Are we here to worry about ourself or the retail. Isn’t stock market a zero sum game where in a better informed person gains from the ill informed or less informed person. Even if it engineered, kudos to you that you know it is trap. Why the urge to make it a theorem or generalize it so that it fits ones narrative. Anyway I am not participating in this further. Such arguements are not productive beyond a point. To each his own.
Happy investing
Regards
Ps: I will be buying on dips as I have always been. New base for nifty according to me is 10600 and will buy agressively if nifty falls below 11000.
Its a good idea to increase position size at dips. Add to it, one optimization/filter.
See, the hype generated around yesterday’s announcement seems to be little understood because it is still new. I would suggest to let it sink in. We as retailers should not let the media and the politicians sway our logical thinking.
Therefore, let that filter be:
Buy only those stocks whose quarterly results DONT reveal any bad news, and EPS/bottomline/topline is stable.
Let there be a real reason for buying more of a certain stock, as opposed to just a feeling that 10600 is the ultimate bottom, these feelings are generated by media influence.
The trend on the weekly chart is still down, and in down trends, stocks with bad quarterlies are punished.
PS: It is okay to negate each others views, that is where the gold is.
This sector is doing badly, therefore we need monthly supports. But IT is doing not that bad, therefore weekly supports should suffice… look at TCS, it is settling at a strong weekly support. Probably a good time to buy. On similar lines, HCL Tch is a great purchase at 1000; at multiple weekly bottoms.
parabolic run up in goldiam!
buying climax reached i presume for now, should hold and test 123 for any further upmove…
{for the classical handle to the cup that we expect}
same story in hind rectifiers, should hold 144 for further upmove…
what i have been experiencing, is these typical cup formations generate climactic stopping volumes while they reach the previous high , cool down to retrace a previous resistance , test it, forms a support and then further move up…
catching a scrip while testing an all time high while coming out of base , leads to trouble, like buying a top of a impending double top…
hirect generates a good point and figure count…
i am sure you are a fundamentalist to begin with, so goodluck with this scrip!
disclaimer… interested to monitor hind rectifiers, not invested in any at present
the company is diversifying, mainly caters to industrial and auto sector which is a commodity niche to begin with, slowdown masked in numbers due to offset from some traction in the decorative paint segment…
only in the last couple of months this scrip is showing change of character, something that might be interesting going forward
but the volume difference in the last 2 upmove looks more like a corrective abc pattern and then an upcoming major retrace?..
if any otherwise action happens, this would become interesting
anyone have any inputs regarding this, please share…
disclaimer… tracking
there is an excellent discussion regarding paint industry in coffee can thread in this site…
I have been holding PSP for last few months. It is a good company with good management. Financial performance is expected to be very good in future. I guess that is getting reflected in technicals. I am bullish on the counter.
As far as PSP is concerned, on the technical front one should be alert for bearish candlestick patterns as it approaches its previous top of 580 levels. This level has already been tested 2 times and this will be the third test. Yes Bank is a classic example of how sometimes bearish candlestick patterns can alert you to a possible reversal as price approaches a top that has been tested multiple times. Ofc nothing works perfectly all the time but I have found it useful. There was a bearish engulfing pattern on yes bank weekly and also a hammer on the daily right at the absolute top of 400 if I recall correctly. In fact there were two hammers spaced a few days apart.
On the fundamental front psp is a real estate contractor. Balance sheets and income statements of realty cos and contractors are difficult to interpret even for accomplished CAs. The best bet is to look at cash flow statement and if one finds comfort in the cash flows then it could be a good buy with the caveat that technicals are also looking good. Just my two cents to add to the discussion
About psp technicals what I like the most is it is nicely testing the previous resistance after breakout and retrace and then moves upward and in this specific chart, this week’s bearish candle has the lowest volumes at this present price levels when ever it was tested…
Thanks for the caution, after all unless it breaks out to a new high and fails to retrace back below the current high, anything is possible…
I remember that time in yes bank, i had posted a chart here on it, calling that top as accumulation and I was trading it, the way it turned back on the 3rd week of August, screamed something was so wrong and the price didn’t progress on a trend, for almost 1.5months after breakout was out right ominous…
I just had a look at the PSP daily chart and my reading of it suggests that at the minimum one should postpone any purchases and wait for it to test its support of 530 which was previously its resistance. I can see a shooting star clearly on the daily today which is a bearish sign and most likely means it will test this level.
I also had a look at the cash flow statement and I am not too sure that one should pay close to 2000 cr market cap for that kind of cash flow. Needless to mention , i could be wrong on all fronts but personally speaking i would dial down the optimism surrounding this co for the time being. Views are all personal as chart reading is a subjective and idiosyncratic subject.
What is the opinion about hero MotoCorp in this forum,
It is showing dramatic monthly volumes at 2015 lows, which also happens to be the high of post 2009 rally…??
