Tata Motors
update: bought @ 160, stop loss triggered
Net Profit: -3.15% in one day
Buy: below 168.
Target: 180
Stop Loss: 155
Maximum hold period: 10 days
update: One of the reason for entering this stock was an expected petrol price cut in the coming two weeks and an overall increase in volume in the past few weeks. However, this tip failed to deliver, perhaps because of very narrow stop loss?
update:Stop loss triggered.
Net Profit: -3.7% in 1 day (loss)
The government is expected to announce further incentives package a couple of days. If that does happen, i expect stocks like KSOILS which have seen a surge in volume in the past few days will gain. Here is my planned trade (keeping a stop loss of hardly 4% !)
Buy (Current Market Price): 54.00
Target: 58.00
Stop Loss: 52.00
Maximum Hold Period:1 week
Risks: This week has seen growing signs of the recession in US getting worse. A sharp downward movement in global stock markets is likely within a couple of weeks.
update: target reached on December 24th 2008.
Net profit: +10.3% in 2 days.
Falling oil price has aroused my interest in Jet Airways. Here's my planned trade.
Jet Airways
Buy (Current Price): 165.00
Target: 182.00
Stop Loss: 149.00
Maximum Hold period: One week.
Risks: Loss making, debt ridden company heavily affected by global recession. Jet airways has expanded operations to include international flights but has never really got the returns for it due to global economic meltdown.
Positives: 'Cheap' in the sense that the stock is trading below book value. Falling ATF (Aviation Turbine Fuel) prices.
update : (15 Dec 08) Bought Tata Steel at 204 and sold at 225.5.
Net Profit: +10.5% in 6 days
For a long time I have waited for the current economic crisis to unfold. Have stopped trading, even stopped my SIP. Not that I think the crisis is really over, but with the current government economic package there should at least be short term respite to companies. Now, i think it is a good opportunity for investing in Tata Steel, with a time-frame of not more than one month.
Current price of Tata Steel is Rs. 196/-.
Lets look at the Price Volume chart of Tata Steel and moving averages from IchartsThere you see. two clear bullish indicators : Rise in volume and price rising above the 20 day moving average (the red line).
However, there are risks involved. The current economic crisis is not over and bad news from US about housing and employment has never stopped pouring in. Also, Tata steel is still burdened by debt arising from its Corus acquisition, and it is quite possible that if the current crisis worsens, the company will face a Liquidity crunch. It has already cut output and I would not say the outlook for the steel sector has suddenly dramatically improved. So please, keep a stop loss and respect it. Moreover book your profit once the stock rises about 10-15%.
