SJS had a breakout and consolidation in and around 465. In fact it formed a triangular consolidation between June and August 2022 and then broke out. It has had a very short trading history.
Post IPO highs here were around 550. IPO was priced I think at 542. In effect all those who had applied for IPO did not get a chance to have any profits post IPO listing. So a lot of them were waiting to see their own purchase price since a long time. So when price went up to around 540-550, there was expected to be major profit booking as a lot of stuck investors might have unloaded.
Even the double bottom pattern that had happened between 367 and 455-465 had a target in vicinity of 550-560. In such cases where pattern targets are visible, its better to book atleast partial profits if not full profits. And rather than waiting for exact targets, try and book partial profits say 5-10% below expected target prices just to be on safe side.
In other situations (not specific to SJS), where we have entered a momentum trade, its better to keep a trailing stop loss at an appropriate place. It can be a certain percentage below swing high, or can be a short term moving average we are comfortable to use, or a retracement level to earlier rally etc.
And in the first place, try to find out an entry point which is very safe… Instead of say entering in SJS at or above 500, there was plenty of chance to enter it at around 450-460 and then trail stops. I see a lot of guys buying on the day of breakout and getting stuck at much higher levels. Instead of that, we have to view the risk reward equation before taking any trade and stick to trading plan.
@Joshkumar I don’t track or know about Nava.
@Ansh_Gupta All the cyclical sectors like steel, iron ore, aluminium etc have had their day in the sun and in the past year or more stocks from these sectors have gone up multiple times over a short period of time. There are bound to be a lot of naive investors stuck at much higher levels at each level. I don’t fancy such sectors which are in stage of decline after sharp rallies. Money gets stuck unnecessarily and this could be used much more effectively in sectors which are in momentum. I had listed sectors enjoying strong momentum earlier in a post, where I remain bullish.
@KRUNALBABARIA__ I am currently not tracking PNC Infra. On charts it seems to be trying to break out. As of now it does not interest me.
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