@hitesh2710 what are your views on granules guidance is close to 10 pe at fy24 earnings but what after that? I think the stock looks cheap at current valuations decent returns in short term but can it be a great compounder ?.i am treating it as a core portfolio stock hold for minimum 3 to5 years what are your view on it for the long term?
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Would HDFC B, ICICI and SBI be a good proxy to play the run up in Banking sector
Dear @hitesh2710 ji,
I am going through Mark Minervini book. The author says that for a proper base formation there should be volatility contraction and preferably a few shakeouts. This sounds contradictory to me.
Could you please help me understand this.
Also sheer number of small and mid caps hitting upper circuit (including plenty of not so good businesses), can this be considered a sign of market heating up too much.
Thanks 
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Hi @hitesh2710 , your view on Aurobindo Pharma. I see below triggers
Injectable business trading cheap compared to gland pharma
Api production has pli benifit
Expansion plans for next 3 years
Hitesh Bhai
Can’t thank you enough. Your words have been no short of gospel.
In your earlier post you alluded to the fact that there are some scrips in the financial space available at reasonable prices. Could you please name them (you of course had asked not to request you to name, but I am still doing so). Just wanted to study what you consider a reasonable price for a company with specific pedigree/set of numbers.
Thanks in advance.
Shan
I have been looking at the charts of a lot of financial stocks and main among them being banks. Most of them seem very interesting. While some of them are close to all time highs, some of them seem to have formed good bottoming formations. This is one of the reasons I felt that this was a sector to look at. Same thing happened few months back in sugar pack. When the stocks were forming bases, the ethanol story was then too well known. But because there was a strong run up in metals space, everyone’s focus was there. Post that what happened is well known.
Now I don’t want to go into specifics of financials and start naming names. I prefer the private banking space and there are only a handful of stocks there to look at. For someone who wants to look at them either fundamentally or technically it should not be a difficult job.
Regarding these oft repeated queries about Laurus, there is nothing new to add. Just have a look at the numbers they have reported and the kind of commentary they give. If that’s not enough then I dont know what will be. I don’t track other stocks like aurobindo, grindwell, granules etc.
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@sarthakkumar19_
Dont try to hang on to each and every word written in the book. 
Try to get the gist of the message in the book.
I think base formation happens in a fixed price range. For example, a stock consolidating in a range of 65 to 85 will have a lot of up and down moves between 65 and 85. At times there will be half hearted attempts at breaking out or breaking down from the range. These are mere whipsaws and stock price quickly gets back into the range. But this kind of false signals often shake out the weak hearted investors.
A recent example of range breakout for anyone wanting to study would be Somany ceramics, Stock price was stuck in a range of 400-450 since almost 3 months and since past 2 days has broken out on the upside with good volumes. Post breakout its not uncommon for stocks to again establish a small short timed range just above the prior trading range before taking off.
Yet another example of explosive move post range bound tight consolidation was thangamayil. For anyone wanting to see practical example of what is a tight consolidation and then a blowout rally, this is a good example.
I do not have any positions in any of the above stocks but they interest me immensely as a student of techno funda approach.
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You have ennumerated good proxy plays to enjoy run up in banking sector. All three namely sbi, axis and icici bank have good chart patterns. Results too now seem to be coming through for these banks after many quarters of pain.
Here too one can have a basket approach. A basket of 2-3 large caps and 2-3 smaller banks could do the trick.
Fundamentally these are sectors that are getting out of the Covid overhang as the second wave is softening appreciably and the general market feel is that these kind of stocks will outperform.
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This thread has been a game changer in my investing journey so THANK YOU @hitesh2710 for being a selfless teacher🙏.
Can anyone help me to find out a good platform or screener query (something equivalent to thinkorswim in US) to find stocks trading in consolidation range?
marketsmithindia.com is the Indian website of William O Niell who wrote the book referred to by Hitesh Bhai in the thread above…
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Hitesh Sir, Do you track Dishman Carbogen now? I seem to have purchased it in the March meltdown and it has appreciated along with the rest of the market.
My reason for purchase was their reasonably good portfolio in the high margin oncology space and it appeared super cheap at 90 odd levels. In hindsight, I probably got lucky because the management seem to have a track record of tripping the minority share holders.
Another good resource for technofunda investing is the [The Market Chat Podcast - YouTube](https://The Market Chat Podcast) from Richard Moglen. He interviews a variety of experts with varying styles - growth investor, swing/positional trader, day trader, winners of investing championships etc. There is always something useful to learn from each style.
One thing that struck me the most from the interview of the winners of US investing championships is that almost all of them are heavily influenced by the CANSLIM approach
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Hi Hitesh sir,
With the government bringing forward target of 20% ethanol blending in petrol to 2023, do you think sugar stocks or other ethanol manufactures will benefit much out of it? If yes, if we have to use a bucket approach to buy some stocks, which ones would that be?
Or, has this news been already discounted into the price of the concerned stocks?
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@hitesh2710 Sir what is the charts telling about Vaibhav Global. It has fallen from 1000 to 800. What can be the time to buy into this counter?
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Hello Hitesh Sir, I really want to thank you from the bottom of my heart for all the selfless knowledge and know-how that you impart on a daily basis without any prejudice on this forum. Only because of reading your Portfolio thread and getting the ideas (not just blindly following, but go out to company website, listen to concall, read B/S etc) my own portfolio has recovered now. One of the best pick from all the great ones that you have provided some input on is Laurus Lab. What a stock it has been from the past 1 year.
Today it has gone to the ATH. May I know what are your further analysis/expectation from this stock? When should one start trimming position in it? Or has the picture for LL just started?
Thank you once again.
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Although question is for Hitesh sir I wanted to add a very relevant tweet from another very good investor: jeevan Patwa sir. He is also invested in laurus and hence positively biased. Take it for whatever it is worth but thought it’s relevant to this question:
https://twitter.com/jeevanpatwa/status/1401775000382677000?s=19
Ps: I am invested and biased too.
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I think part of the ethanol story has already been baked into the price after such a stupendous run up in most sugar stocks and other beneficiaries like praj inds. Maybe some more juice left. Its difficult to guess how much upside is left.
I had bought a basket of sugar stocks as I had mentioned in the thread earlier and got out after getting more than the expected returns. Post that too stocks have been running hard, and I have no clue how much upside is still left.
@Ajjugattu Vaibhav global seems to be in corrective mode. When this correction ends needs to be seen. As of now cannot spot anything specific.
@desi.guru Today’s price action in Laurus seemed to be of buying panic, maybe due to some company specific tweets or any other reason. These days any tweet from well followed personalities leads to abnormally large stock price moves. Retail investors need to be careful not to be carried off in the frenzy and buy only when stock price is in a consolidation post run up or there is fundamental valuatioin comfort.
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The current status of the markets seems to be taking everyone by awe and surprise. There is definite froth visible in the markets and it has been so since past many weeks. How long this will last is anybody’s guess.
The one good thing that the markets are doing is that there are pauses in the rally, more so in the nifty. There are sector specific moves and sector rotation which is also clearly evident.
If one tries to correlate the ground situation of the economy and businesses with the stock market moves, it will be difficult to reconcile the two. But many a times bull markets have a mind of their own and stocks continue to run beyond anybody’s expectations and continue to remain and go up in bubble territory.
The one thing that I am always on the look out for is any loss in momentum in market breadth and loss of momentum in small and midcaps. Many stocks in my watchlist are in consolidation mode and some of them do seem to be breaking out post these consolidations. As long as these kind of patterns continue to play out, I will continue to be cautiously bullish. I will though continue to be on the lookout for any signs of trouble. Even after all due precautions, sometimes market corrections do strike unexpectedly due to totally unforeseen reasons. That’s a risk we as investors always keep incurring.
Many of my investor friends are building up cash in their portfolios and I too am tempted to do so. But as long as we see momentum in stocks providing decent opportunities, I am refraining from raising cash in my portfolio.
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with this one can assume that no fresh buyings atleast as of now Sir?
hitesh sir, can you please share your opinion on sumitomo chemicals?, stock is making 52 week highs.