Regarding stop losses, in core positions where I have been convinced about the fundamental part also besides the chart, I tend to keep lower stop losses, like say the 30 week moving average. Many a times stock prices tend to go below the 30 WMA but the slope of the moving average is still up and in many of these cases, stock prices make a comeback and resume their uptrend. Its only when the slope of 30 WMA starts going down and stock prices also weaken that we need to worry.
I do not use a specific formula for executing stop losses. I often do partial profit booking at levels I think would provide resistance and if the rally assumes parabolic proportions, sell in lots.
Star Cement has given a good breakout last week. Crucial level was 115-116, which is just below where the stock price closed. (118) There could be some consolidation around these zones ( plus or minus a few rupees) and for those convinced about the company and sector, could be an interesting level to watch. I don’t track it too closely but since you brought it up, the chart looks good. And some of the names in cement space like JK Lakshmi cement have shown very smart moves in last few weeks. So it might be a sector to watch.
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