Re: CALS Refineries - Investment advice
CALS is not an investment ... not at all, it is a plain bet. A company that virtually does not exists, there is just a hope that someday it will be a company.
But for sure its a good for Positional Trading... I have done it couple of times, bought around 0.55 and exited around 0.85... that is around 15% return after brokerage (4paise on each leg)... which is good return.
The only good thing about CALS is that it has a good volume, if you look at annual volume it is the no. 1 traded stock in quantity, followed by UNITECH & then SUZLON... so there is never a problem of liquidity or no buyers available unless it is locked at circuit.
There has been a recent notice against 3 brokers linked with this scrip as they were manipulating the price (
http://www.sebi.gov.in/press/2009/2009311.html).. that is why we are seeing this fall in the prices.
If you ask me, and go by technicals then 0.66 is a good support and buying is expected to come around that level. I will be accumulating few at 0.65 then some more at 0.6 and finally around 0.55 if at all it goes there and wait for a bounce back uptil 0.80 where I will initiate selling and sell it at 0.8, 0.85 & 0.9
Why I see 0.66 a good support is by the Technical chart of accumulation/distribution along with Point & Figure chart.
Here is what I am looking at...