Advise

Bought @ 947, almost near high and after that it corrected almost 7%
Please advise for medium term, hold or sell??

 

Thanks shabbir...

 

When did you buy indusind?
The day when RBI rate cut happened?

 

Yes....

 

Ok I guessed that.
That day it was FII's game and they tried to trap longs. Markets opened strong on back of rbi rate cut and was holding up due to obvious reasons. Nifty touched lifetime highs and then all of a sudden, it came crashing down. Surprisingly banking names were hit the most that day (when the opposite should have happened ideally).
Within minutes banking names lost ground and were down heavily, it happened lightning quick even before anyone could understand what was really happening.

Jignesh - am I rite? I am asking this to you as I want to know what you saw that day & experienced. Am i rite above ?

 

Well, everything does not explained by FII
I have seen many times, trend negative, nifty falling 100 points and still FII were net buyers on that day. So we should focus on the levels, rather then FII & DII.
Markets were over valued when second rate cut came and reached to nifty PE of 24 above. Which was clearly bubble zone start and it was impossible to sustain the market at that level.
Still the market is overvalued and if Q4 disappointing then further fall...

 

I was not trying to explain anything through FII. I just said what happened. Do not sense me wrong!

You are justifying the fall with pe 24, because you want to think in that way or you want to believe in some reason for the sharp fall and be satisfied with the reason. If you were so sure of nifty pe 24 then you would never have entered into indus ind then. Only after the sharp fall you are believing that pe was very high.... same happened to me also in another stock.... Thats why i was saying... We are never sure of pe 24, only after deep fall, we believe in high pe & believe in the reason.

Overvalued is a vague term sometimes. Many stocks in market are overvalued since long time and some will continue to remain so, only FII or a big group of FII or big fish decide what will remain overvalued and what will be not. Thats it!

Cheers!!!

 

Dear Sachin
I saw its PE crossed 24 at the evening and I took position in morning
However euphoria was so much in the morning
I had already analysed betwewn Hdfc bank and indusind ( look at their charts, both identical) and I felt that more growth story remaining in indusind rather then Hdfc bank.
You know BNF was running on that day so I took the position.
" we can analyse situation more clear afterwards...( win or loose)"
Cheers....

 

Again it formed high before results and then now moving downwards with low....
your view in current situation please ....

 

Indusind bank has good support around 840-850ish levels. The rup up it had upto results, and Q4 numbers coming just in-line with expectations, it was nothing but massive profit taking. Results were just in line and not something that beats expectations.

But you can blame the hitting of low on the big decline that happened both in the nifty as well as bank nifty, and indusind being part of both had a good hitting as well.

 

Buy on rumers and sell on news worked here..