[…] companies like Asian paints, Pidilite would always command premium valuations due to the niche sector that they operate in. So one won’t get deep corrections in such stocks (unless there is a market crash such as March 2020).
Interestingly, Asian Paints’ fall in the last month from its 52 week high at 2873 to 2376 (-17.46%) has been almost as much as its fall in March 2020 from 1877 to 1520 (-19%). If you entered around this price, it was (is) a great opportunity!
Salil’s advice is to set up a stop loss near the weekly support lines for stocks where you aren’t confident of your entry, or want to protect profits should there be a correction. For Asian Paints, it would be near the two lines below:
Could you share why you’re only looking at ICICI vs SBI in the banking space, and how you’ve come to a decision on consolidating between the different stocks you have?
Not invested in Asian Paints.