Saturday, November 5, 2016

5 hot stocks & their levels to enter during correction- An update

You might have read my article ‘5 hot stocks & their levels to enter during correction’ which I had written on my blog in Sep 2016.

Many of my readers requested me for an update on the stocks which I had recommended in that article. Here is update on all the 5 stocks-


1.     Ajanta Pharma:
The stock has corrected almost 8.5% from the levels when I has published my last article. Currently the stock is trading near 1876. My recommended levels to buy were 1700-1650-1565. There is still some more wait for these levels to come. We can best expect that we shall get those prices, at-least the first one at 1700. If the stock moves down to 1720 kind of level, I would recommend you to start accumulating Ajanta Pharma.

2.     Asian Paints:
The stock has corrected by almost 12% since the time of last article. Now trading near 1043. The stock has reached its first support level, precisely at 1025, as recommended in earlier article. One can start accumulating at current levels in small quantity. Further levels, which I would be looking forward to are 970 and 920.

3.     Pidilite Industries:
Pidilite has registered a low of 648 in Sep. Hope to get the same or even better levels to enter again. I am looking forward to 625. Let’s see.

4.     Tata Motors:
The earlier levels which I had mentioned were 470 and 425. Stock is currently trading at 512. We still have some wait here. In case of Tata Motors, now it seems unlikely that the stock will correct to 425, unless there is some negative news. A level near 470 is a level which I would be looking forward to.

5.     Ultratech Cement:
The levels to enter are supposed to be around 3300. Good stocks corrects very little as usually the demand is high. So as is the case with Ultratech Cement. So far it has corrected only 6% from its top. However its not a good idea to enter at dearer price. Patience is the key here. You never know, you will get a discounted price near 3300.

Here is my philosophy of entering into a stock near support. I feel more comfortable when stock start showing (some) gains immediately after I enter the stock. When we take an entry near the support, it is unlikely that the stock will move further down- at-least it will not move down to large extent. In similar context you may wish to read Buying 'Breakout' Vs buying 'Near Support'


I believe in making keeping the things simple. If you wish to trade/invest in deliver based stocks over medium term- Prime Cash can be an ideal solution for you.


Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on above write-up.  

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