So, the bull run continues and I am keeping this quote from Arvind Kothari in mind.
So, be prepared to lose some money from your basket which has been increasing since April. This will make sure that you will enjoy this bull market and not exit early.
But the market looks stretched here. I will be alert and focused and I will make sure not to lose much from here if there is any correction in the market. Also should not run after every breakout in some kachra stocks.
The regret will always be there, I missed this stock, I missed that stock. I exited early, and so forth.
The SmallCap Index is up more than 11% in just one month after my last note.
In the last 2 weeks, large caps also showed similar strength to mid and small caps may be due to the return of FIIs or state election results.
Disc: Update on last month’s trades
Still holding my position moving slowly if this crosses 300 then further upside possible.
Also, there are a few new orders received by the company. and promotors were also buying from the market.
Closed my position with little profit as it was not moving as expected.
Simple clean move. Booked 50% today on this trade and trailing the remaining position.
I used to book full positions either in or out completely but I have missed many up moves so don’t want to miss either or give back all my gains to the market so trailing with a 50% position. Will book remaining position even with early signs of weakness.
The power sector, PSU, and mining magic playing out
Holding all the positions with Trailing stop-loss at 200. If it closes below 200 then I am planning to close it at the end of the day.
For the upcoming week my focus is on selective Pharma and chemical stocks.
Orchid Pharma came on my radar after the gap-up on 8th December and today it crossed the tight range with good volumes.
Fundamental triggers: Merger with Dhanuka Lab, promotor holding to surge to 74.45 pct vs 69.84 pct due to proposed merger of Dhanuka Lab research upgrade. The company also targets to 1400 cr turnover.
Orchid Pharma | Source: JM Financial
- The management is confident of delivering 20-25% Revenue CAGR over the next few years (excl. PLI);
- The company is also guiding for 100-150bps EBITDA improvement annually;
- The company has multiple growth levers: (1) capacity expansion; (2) new product launches in regulated markets; (3) PLI for 7ACA and downstream products; (4) NCE Enmetazobactum; and (5) Cefiderocol, which will play out in the next 4-5 years;
- The company is at a land acquisition stage in Jammu (for PLI) and expects an update by the end of this fiscal;
- The company is now debt-free. Post-takeover, the company has taken several cost initiatives to improve margins. Strategically, the company is backward-integrating and forward-integrating its operations to become an integrated player in cephalosporins.
|| Gap-up stocks are generally considered strong technically if the gap is not closed and the price consolidates with the gap ||
This happens when there is overnight something positive development or news and the market has not discounted it previously.
One more example of a Gap up and then price consolidating in the range is Ceinsys Tech Ltd.
You can read more about it in the previous post of @phreakv6 with the upcoming triggers.
:: Just sharing my thoughts and update of last post
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