There are various reasons for a stock to rise. Some of it is based on fundamentals, technicals and more on emotions.Whenever a stock rises, it can never keep rising in one directions. For whatever reasons, it always changes direction. The law of demand and supply comes into play. When the supply exceeds demand, the price will always fall.
Tom Dorsey says its like throwing a ball in the air. At some point it meets resistance and starts falling. It cannot defy gravity. So is the case with stocks.
If you look at the chart carefully, you will see that in the month of February, 2013, the stock rose to 1550 and thereafter it gave up its gains and fell all the way to 1100 in March, 2013. This shows that there is every possibility of any good stock correcting for various reasons. If the markets are volatile and there is fear prevailing, even the best of stocks give up their gains. One can make money only when you buy good stocks at reasonable prices. My personal view is not to enter Kaveri at its highest price, but wait for things to cool. Memory is short and investors move to other stocks for quick gains. So if one is patient, there is always a chance of getting it at a good price.
I do agree, sometimes it does not work. So let the train pass, another will come.
My experience with Ajanta has been on the same lines. I bought 350 Ajanta at 360.When the price moved up last time to around 630 I sold 200 and bought 200 at 580 levels. Then resold 200 at 890 levels . It fell once again to 790 levels and I bought 200 once more. Now it is again at 930. I keep booking profits again and again. This strategy has paid rich dividends for me. I learned this from Hitesh and Hemant Gupta who are real masters at this game. Their portfolio keeps churning.
The whole idea behind giving you the example of Ajanta is that even a good stock gives you an opportunity to buy it again on dips. A strong stock should always be bought on dips. Kaveri too is a strong stock. I am waiting patiently for my time to come.