Large Cap investing


*Buy Growth Large Caps, select midcaps, with EPS growth of atleast 10% over a long term.

*Allocate 5% of PF size to each stock.

Exit at 20% gain. Flat out.


*Buy only those stocks that readily touch all time highs, which is a function of the underlying growth in the business.

*Entry is made near 200 Day Ema. Generally.
But, if the stock is a great one then near 50 Day Ema, like Asian, Pidilite, Dr.Lalpath, Havells.
If growth is slower, then waiting for 200 Weekly Ema for entry is also wise.

*Exit could be 10% for low beta stock like HuL, Shreeram, Icicigi, Gold where 20% feels like a stretch.


*Simple to execute.
*Quality of stocks in the portfolio is top notch.
*Diversified Portfolio
*Very little room to go wrong.

*Gains are limited to 20%, so any follow up rally one would miss.

And that’s not too bad, because over the longer term a Large Cap PF is not likely to give better returns.

I am going to start posting the trades. Will start with a couple of recent ones.


Bought Auropharma at 740. (Actually 700)
At weekly 200 ema.

Although, growth is good but this stock tends to swing. So, 200 W-EMA, also pharma sector was being sold into so I waited for 700 for entry.

I wish to place the exit at it’s all time high. But that’ll depend. Will decide when 20% touches.


Bought Shreecem at 26400
Target 10%.

Just like that I will be seeking opportunities.

I will be careful as to not to over-allocate to single sector, like Pharma and Banks currently.

Current holding:

Amara Raja
HoneyWell Auto


VST Inds
Cochin Shipyard
City Union
Bayer Crop Science

Given that the Market is HOT right now, waiting for a 500 pt correction in Nifty to see where these stand, before taking a position.

Exit criteria is not well defined. Will there be any stop loss or time based exit? Otherwise only losers will form the portfolio after some time.

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Isn’t Amararaja risky at this stage?

This strategy doesn’t apply to every stock on the board. The stocks that we will enter are growth stocks. So, yes, there could be a time that we end up holding laggards, but they are all expected to give returns within the year.

20% Annual return target on the overall PF should remain intact.

Currently, I have allocated only 30% of my total cash position to this strategy. Only after seeing a bear market through will I be more confident.

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Yes. Therefore a small position of 1.5% of PF has been taken. Whereas, non-cyclical linear stories get a full allocation of 5%…like IciciGI, HuL, Britannia, Shreecem


Please let us know the price you bought.

New Trade: Honeywell Auto

Given full allocation of 5% at 40000

I prefer Nifty 50/100 stocks. Ones in Futures. But, Honeywell is an exceptional business. I am going to have a tough time selling it.

Similarly, another good business Whirlpool. Had allocated 4% of PF to it at 2000 and still holding. Target is All Time High.

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