Your view on SBI?

[emmabing16]

sir, you have purchased at a 3 year high, i suggest buying more closer to 200 or 180 to average your purchase price.

That was helpful. Please suggest if i can invest at 220 levels again?

I am sure i made a huge mistake buying the shares at a highest level but the strategy was right, time was bullish and the expectations were positive for this stock.

Please suggest if any further correction can happen or not?

 

[Somatung]

That was helpful. Please suggest if i can invest at 220 levels again?

I am sure i made a huge mistake buying the shares at a highest level but the strategy was right, time was bullish and the expectations were positive for this stock.

Please suggest if any further correction can happen or not?

Hi

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[ashu1234]

That was helpful. Please suggest if i can invest at 220 levels again?

I am sure i made a huge mistake buying the shares at a highest level but the strategy was right, time was bullish and the expectations were positive for this stock.

Please suggest if any further correction can happen or not?

Seriously you invested this much?? I mean near to one Cr just because you have liking to banking sector.

Indeed you had strategy, but didnt that strategy had any stops in place?
Naked buying without any stops is no strategy at all.

Anyway chart may look retracing and many will advice you to average, but averaging in a falling market is like catching a falling knife.

image ru

Apart from banking success stories that might entice you, there is a major havoc pending of Fed reserve raising interest rate in US, this will be discussed in coming two days. God forbid if any unexpected announcement happens overnight, price may crash like anything, no doubt its a good stock and is too big to fail as its supported by Govt of India and Raghuraman has reassured that there is no threat or impact to India with rate rise, but tell you what, stock market is none of the business of govt, and external event can wipe out investors equity at any moment. Better you dont add to the already worsen situation, if it falls from here there is no where to go.
If you are really an investor and you are sure that your money is not leveraged then you can sit back and wait for 2 years.

Technically if you ask, it can retrace 50% from here till your buying price, but its clearly on downtrend, so you wont be able to get back your real entry price back. A quick fix would be to sell SBIN futures with equal amount till this interest rate uncertainty get's wiped out.

 

[AncientLion]

moral of the story as i said earler, just average your position then exit in profits, this is the working principle of SIP or systematic investment plan

 

[ashu1234]

moral of the story as i said earler, just average your position then exit in profits, this is the working principle of SIP or systematic investment plan

Are you kidding me??

You are equating the above persons situation with SIP's.
I have read your messages which are highly inspired by the mutual funds and SIP's. Now let me clarify few things:

1. SIP's dont put a big sum at one go, rather they put small money(read installments) at each market point month by month. Now here the person clearly has over leveraged his sum at one point and looking for a exit somehow.
2. SIP dont put your money in one stock, rather they diversify your small installment into a group of shares, so no way averaging in SBI resembles working principle of SIP.
3. Market will open on Friday, and if you dont track international events then be informed that on Friday night fed might and might not increase interest rates. In case it doesnt, there might be some windwall gain from averaging, but if it does, SBI can gap down by another 10-20 Rs further. And I'm sure it will be a panic for a guy who started his investing on wrong foot. So tradeoff is risky and averaging is not a strategy at this point but pure gamble at very unsuited time.

Lastly dont blindly follow stocks picked by mutual funds top holding, as suggested by many here, reason being those mutual funds have picked up those stocks years back and are doing so since inception. There will be a huge difference in their buying price and yours. I even know Rakesh Jhunjunwala's and Amitabh bacchans portfolio too, but I can never match their buying price coz they picked up at price which I never be able to get. And add to that mutual funds might be hedging their position, and gaining from fall too, so just considering a fact that you can mimic their portfolio will take you no where. If its that easy mutual funds company will cease to exist.

All the best, take informed and wise decisions.

 

[Dax Devil]

Feds didn't do anything to interest rate. Banking sector may spike up tomorrow.

 

[ashu1234]

Feds didn't do anything to interest rate. Banking sector may spike up tomorrow.

Yes, may be next month....lol
Sword is left hanging.

 

[AncientLion]

Are you kidding me??

You are equating the above persons situation with SIP's.
I have read your messages which are highly inspired by the mutual funds and SIP's. Now let me clarify few things:

1. SIP's dont put a big sum at one go, rather they put small money(read installments) at each market point month by month. Now here the person clearly has over leveraged his sum at one point and looking for a exit somehow.
2. SIP dont put your money in one stock, rather they diversify your small installment into a group of shares, so no way averaging in SBI resembles working principle of SIP.
3. Market will open on Friday, and if you dont track international events then be informed that on Friday night fed might and might not increase interest rates. In case it doesnt, there might be some windwall gain from averaging, but if it does, SBI can gap down by another 10-20 Rs further. And I'm sure it will be a panic for a guy who started his investing on wrong foot. So tradeoff is risky and averaging is not a strategy at this point but pure gamble at very unsuited time.

Lastly dont blindly follow stocks picked by mutual funds top holding, as suggested by many here, reason being those mutual funds have picked up those stocks years back and are doing so since inception. There will be a huge difference in their buying price and yours. I even know Rakesh Jhunjunwala's and Amitabh bacchans portfolio too, but I can never match their buying price coz they picked up at price which I never be able to get. And add to that mutual funds might be hedging their position, and gaining from fall too, so just considering a fact that you can mimic their portfolio will take you no where. If its that easy mutual funds company will cease to exist.

All the best, take informed and wise decisions.

I am a guy who puts the entire capital into FD then uses the interest to buy stocks, I am successful because I use my forex trading background to pick lows and quit on tops.

He bought SBI near the top, i suggested averaging because otherwise he will have to book a huge loss as sbi may take more than a couple of years to get back to those levels.

In a cash purchase if the stock is good and has a govt shareholding then there is no reason to worry, you can always average out a tight position.

I win

 

[AncientLion]

Feds didn't do anything to interest rate. Banking sector may spike up tomorrow.

The market was usd overbought , and there was a very strong opinion that fed will raise rates in september, it did not, so now we are witnessing an unwinding of usd positions and hence the usd weakness back to fair value levels.

usd weak markets up

usd strong markets down

 

[kaalchakrasamay]

Let SBI cross 240 - 255 zone.
Perhaps a good stock for next 2-3 months