Hindustan Motors

#1
Hi Friends,

I am new to this site. Could anyone please tell me the fate of Hindustan Motors Shares. I bought 1000 @42.5 and 500 @ 33.6. It looks that the share is dipping quite low and background looks confident.

How long I need to hold on to get the rhythm back or is it better to dissolve them.

Please put your suggestions on it.
 

alokdaga

Active Member
#2
rajesh.sadhanala said:
Hi Friends,

I am new to this site. Could anyone please tell me the fate of Hindustan Motors Shares. I bought 1000 @42.5 and 500 @ 33.6. It looks that the share is dipping quite low and background looks confident.

How long I need to hold on to get the rhythm back or is it better to dissolve them.

Please put your suggestions on it.
Hi Rajesh,

In fact 42-43 levels were exit levels for HM :-( Technically it has not bottomed out yet. I feel it can still see some downside. You can ask SAINT, AMIT and other senior members for their opinion on Some Good Steals forum

Regds

Alok
 

karthikmarar

Well-Known Member
#3
rajesh.sadhanala said:
Hi Friends,

I am new to this site. Could anyone please tell me the fate of Hindustan Motors Shares. I bought 1000 @42.5 and 500 @ 33.6. It looks that the share is dipping quite low and background looks confident.

How long I need to hold on to get the rhythm back or is it better to dissolve them.

Please put your suggestions on it.
Hi rajesh

Background looks confident ?? The last quarter result are pretty ugly...Here some details from the NSE site for quarter july - Sept 2005.

Profit(+)/Loss(-) Before Depreciation & Taxes : -1132.00

Profit(+)/Loss(-)Before Tax : -1730.00

Net Profit(+)/Loss(-): -1747.00

Basic EPS (in Rs.): -1.08

You should have got out much earlier. This one is going to take time to recover. Ofcourse I understand getting out is a difficult decision to make.... your losses are heavy..nearly 30%...

Technically also this one looks quite weak. Still very bearish. It has support at 30. Below 30 will be 27 and then 21.

It may be prudent to get out.. atleast in parts... on every rise.

In future please do keep the following in mind

1. Never try to average a losing position
2. Always work with stoploss. Look at trading mechanically, not emotionally.
3. Keep monitoring the news about the stocks you hold.

I request Amit and Saint also to post their advice to rajesh.

By the way rajesh this is the wrong section for such a post.

regards

karthik
 
#4
rajesh.sadhanala said:
Hi Friends,

I am new to this site. Could anyone please tell me the fate of Hindustan Motors Shares. I bought 1000 @42.5 and 500 @ 33.6. It looks that the share is dipping quite low and background looks confident.

How long I need to hold on to get the rhythm back or is it better to dissolve them.

Please put your suggestions on it.
Hi Rajesh,

Sorry didn't notice this post.....maybe we can post this under Equities next time.As for the background looking confident,I would leave that to those who know these things..........think you got a very nice response from Karthik on thebackground bit.

Like many stocks,Hindustan Motors had formed a bearish divergence on the TRIX and RSI on the weekly charts,but that alone should not have made a decision to exit the stock.If I were in this stock,I am out on Oct 19th at the very least,when long term trendlines got cracked(at about 37).Think we are in for much more correction from here.

Anyway,since you are still in,and we are at 31.55,expect a bounce soon.......Sell in that rally.Either way keep a stop loss of 29.7.In short if we bounce here,great,sell in that bounce.If it continues its fall,get out at least by 29.7.

All the best!
Saint
 

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