Apar Inds has had a spectacular move but today it seemed to have given up most of the gains made in last few days. In the short term it looks to have topped out.
There is no holy grail of finding the perfect recipe for selling a stock moving like an express train. But I think one can try a few observations like
Very high volume days with very high intraday price fluctuations, and price not sustaining near highs.
One can follow shorter term weekly moving avg, maybe like 10 week exponential moving avg.
On fundamental side, we have to watch out for peak margins and peak valuations in a company which usually happens after very sharp run ups. Many a times I try to put in the best case scenario for the next year for a stock and after the run up if I feel stock is expensive on a one year forward earnings basis. I book partial/full profits.
There can be a lot of methods people employ to get out of a fast moving stock. One can try to devise a strategy based on observations over a period of time and see which style works and then try to improve upon that style.
Here in case of Apar, stock price hit an all time high of 3288 on volumes of around 5.9 lacs shares. And very next day (today) stock price corrected sharply and closed at 2600 with higher volumes of 10.7 lac shares. This should indicate that a lot of big guys might have exited, and hence atleast a short term (sometimes a major top) may be in place.
Similar kind of logic could apply to powermech also.
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