Advise on selected 3 stocks

#1
Based on the charts I have selected 3 stocks for long term investment, please let me know if i should go ahead, investment period is 1 year, capital is 80K.

1. Banking - PNB
2. Pharma - Lupin
3. Auto - Bajaj Auto

I have had a look at below indicators(all with default values): MACD, Full ST, RSI, Acc.Dist, OBV.
 
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d_s_ramesh

Well-Known Member
#2
Every trader has his own view about the market. I shall provide you my approach here. All the three stocks you have listed are in the bull run for quite some time now.
When you say a holding period of more than a year, it is a buy and hold strategy and is long term holding.

Lupin came to buy on 2nd week of July 2009 at 861.00, BAJAJ-AUTO came to buy on the 3rd week of April 2009 at 676.00 and PNB came to buy on the 1st week of April 2009 at 442.00. All the stocks have had quite a good run up along with the bullishness that set in on a broad level.

While most of the prominent stocks have either turned down or has gone sideways at the moment. Only few strong stocks are holding to bullishness and all the 3 stocks you have mentioned here belong to the stronger group. But, a point of deep concern here is that apart from LUPIN which will very soon get a bearish divergence the other two have already retraced multiple divergence and gone flat at the top.

Buying here according to me is adding more risk to the position. Probabilities are tilted towards weakness. You can get entry in a small level use a clear stop loss and when the market reaches down close to your stop loss you can load on to your full exposure.

Why I suggest this method is, if suppose the stocks turn down along with the present turmoil in the market you would only loose less. On the other hand if the stocks continue on their bullishness, you have some position to hold on to.

This week you have RCOM coming to buy on the long term charts, you can buy it above 179 with a stop of 146.00. On your 80K capital my advice is to buy 40 shares only. Use your analysis and confirm yourself with its strengths and weaknesses before you commit real money.

Thank you.
 
#4
thanks a lot ramesh and aditya.

I have a question ramesh regarding RCOM, i dont understand on what basis you are saying that RCOM is coming on buy, support i can see from chart at 146. none of the indicators are saying anything conclusive about RCOM at present.
 

d_s_ramesh

Well-Known Member
#5
RCOM has a bullish divergence on the Weekly MACD. The Stock is trending, price has closed above slow moving average.

I have attached my chart for your confirmation. Please use your judgments before committing capital.

More clarifications PM me.
 
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aditya14

Well-Known Member
#6
RCOM is up on news flow alone and will be dumped any day so don`t buy the crap anil dishes out to you.(Stock is up 30+% in 2 weeks)
U can daytrade the shyt out of it though...
 
#7
thanks ramesh and aditya... i had bought RCOM at 175 and sold them at 192 :clap:

I wanted to hold for a year.. but then reliance group.. i really dont want to hold any of them - got a good profit and i got out of it
 

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