Interpret this info from ICICI Direct

hello everyone

someone please interpret the following info received by ICICI Direct regarding the outlook on stocks on a daily basis.

04-sep-2007 10:34
Delivery :BUY APTTRA (APTECH TRANNING) CMP 317 Target 349 and 367 StopLoss 302.1

As per my understanding,

I think CMP__Current Market Price = 317

Target__349 and 367 which I guess is the target price which the stock will achieve in coming days.

StopLoss__302.1 = what is this? Review my understanding of StopLoss with an example:



Let's say I have achieved the target price of Rs 367 as in the above mentioned stock. Now that I know It won't rise any further, I go to the "Sell" option in my account and set a StopLoss at Rs. 365 which (I think) means that if the stock starts to fall down, the moment the price drops to Rs 365, It will sell automatically. hence, still giving me an amazing profit and saving me from the loses.

In reference to the above, why does the the mail suggests the StopLoss to be Rs 302.1? what I believe is that, If the stock reaches (for example) Rs 367, wouldn't it be wiser to put a StopLoss at Rs 365 to minimize the loses and increase the profit?

Of the all the stocks mentioned in the mail, why is that the StopLoss suggested is lesser than the Current Market Price (CMP)?

Dear Friend,

The interpretation wud be as

Delivery :BUY APTTRA (APTECH TRANNING) CMP 317 Target 349 and 367 StopLoss 302.1

Buy Aptech Training at the CMP of 317, for a short term target of 349 at first level and 367 on the second.

Please understand that these projections are based on soe calculations and assumptions and in no way guarantee any price movement whether upwards or downwards.

the analyst expects APTTRA to go upto 349-367 levels, but in case the stock behave in a differet manner than expected i.e. the stock price falls rather than going up. He has recommended that you sell off your holdings at 302.1 i.e. the stoploss.

seniors plz correct me, if i'm wrong anywhere.

hi buddy,

somethin important. Stop loss as the name suggests is protection against huge losses which may occur once u take a trade.

Delivery :BUY APTTRA (APTECH TRANNING) CMP 317 Target 349 and 367 StopLoss 302

In case u buy Aptch and instead of goin up it starts to fall. Then what u do is get out at 302 below which it may fall further giving u a huge loss.


Thansk

thanks for your replies. however, I guess I still didn't get my answer. Why the StopLoss to be 302.1? If the market rises above that, can I not have the upper limit as the StopLoss? Also can I set the StopLoss as soon as I buy the stock?

The stop loss is stop you from making further losses. After you buy APTTRA (APTECH TRANNING) at 317, if for some reason the stock prices falls to 302.1 then sell it and dont book further losses... I hope you got stop loss now

Also if you have a look in ICICI Direct FAQ section, it will help. They state that once you reach the stoploss price, then order gets triggered on what ever limit price you has specified. In case of a buy or sell, stoploss will only prevent further losses but not eliminate losses or act as a fence to protect you from losses.