We cover stocks common to Sensex and Nifty (till 03/06/20 we were covering all Nifty stocks) and form an opinion. The results, whenever announced, are analyzed and observations are made considering almost all aspects of the business and environment. You will find such opinion in a nutsehll under ‘stock-specific recommendations’. We call our system of study as ‘panch-tattva’. To understand it please read the following:
a) ‘accumulate’ means buying it in three/four strokes with weekly gaps.
b) ‘sell on surges’ means sell off in three/four strokes when the opening price is higher than the last closing price before the next result/observation.
c) ‘retain and add’ means stock be retained as well as buy more at the earliest if funds available and wait for next result/observation.
d) Straight buying/selling means immediate action as per observation irrespective of the reference price.
e) When there is mention like ‘medium term only’, it means booking profits fully even before the next observation but if it is for ‘long term’ it means wait for next observation before taking any action.
Mentioning ‘medium as well long term’ means profits in range of 5-7% whenever seen in the intervening period, profit on half the quantity be booked without fail and rest half quantity be carried at least till next observation. .
APPLICARION of STOP LOSS: Since there are always fresh developments affecting the price, application of stop loss mechanism is needed. Selling off half the quantity upon under-performance by 5% against broader indices and selling entire quantity upon 7% under-performance by the stock is needed. Once out of stock there is no need to look back at the same stock until next result.
All past opinions remain untouched for confirming validity by looking at later price graph. The opinions are personal and there is no invitation to act upon them.
This system has been empirically tested for over a decade. We now create a new model portfolio with commencement of every new quarterly results season and preannaunce every trade intended to be undertaken, it is done at only at the opening or closing price, in a few cases when a prefixed price is touched. This makes it possible for the followers to act up on advice without hassles and leave no room for us for anymany price manipulation. You may have a look at such portfolios and appreciate the performance.
Friends may request for opinion on any specific stock, I am available at Cell +919106526440 and also at +919978613034 or through email at email@example.com .This blog is sort of my personal diary.