Q.I have purchased Aban starting from 900 levels & today i took at 724.Despite the strong mkt movement the share has not shown any significant up trend.On the contrary Great Offshore making snart move despite couple of vad news couple of days back.Kindly guide me with STOP LOSS & RESISTANCE. Waiting for ur valuable reply.
A:First of all, dont compare the short term stock price movement of Aban Offshore and Great Offshore.
Great Offshore is making "smart moves" because the promoters of the company have pledged their part holdings with lenders and are supposedly unable to make the margin payments towards the same.If the promoters have to sell their balance stake to repay the loans, the sale will trigger an "Open Offer". Market players are calculating all sorts of permutations and combinations with respect to the various possibilites and hence your "smart moves" in the stock.
Coming to your query about Aban Offshore, the stock is a fundamentally good one and the last reported earnings were also impressive. If your investment horizon is one year and above, you are in the safe-zone. In the short term, the stock faces resistance at 735,771 and 814 with support 690.Hold on.
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Q.I have 100 J&K Bank purcshaed @ 324 last week.Should I average or wait, wait for how long?
A:If you're a short term investor, dont average the stock. Any sustainable short term upmove will come only above 285.Keep a closing stop loss at 266 and hold on.
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Yours truly,
Raghav @ Raghav's Picks
