Fantastic upmove. Just yesterday, I had written about a possible upmove in Tata Steel. To be very honest, i did not expect a 11% upmove in one day ! Now what? I managed to buy the stock at around 204. The stock is already 220 ! An equally solid upmove was seen in Real Estate, but that is one sector I am not touching for the moment.
Should one exit or continue to hold?
There are couple of things I'll mention here.
- At current P/E ratio of 1.6, Tata steel may look extremely attractive. But i am not sure of that. Remember the outlook for steel and real estate in medium term is unclear. Never let the rising market misleading you. Rallies can be funny. So it would be wise to stick to what you had in mind before I made yesterday's stock recommendation. I am now going to keep a trailing stop loss of 5% and will exit at 235-240. I am only looking at a profit of around 15% in this game.
- Recently, Corus, a wholly owned Tata Steel subsidiary has asked for UK help. It is not clear how much upmove one can expect if at all this goes through (which I think is likely). In any case this should cause an upmove.