ABCD Portfolio Update – II
Hard Luck! Tough Start! Or better we should say that happy to stick to our policy of stop loss. We had recommended a buy strategy for ACC on 20 March, 2014, with a stop loss at Rs 1,250 and a target of Rs 1,340. Incidentally, ACC made exactly made a low of Rs 1,250 on 24 March, 2014, and then bounced back smartly. The rally grew stronger and the stock soared to a high of Rs 1,372 on 28 March, 2014.
Since, the stock hit the low of Rs 1,250 first; we consider it as a trigger for the stop loss. Hence, we end of booking a loss of Rs 16 as against the expected profit of Rs 74.
We come across such situations many a times in the markets when we regret the fact that we used the stop loss trigger. However, in the longer run it always pays to use the stop loss. For the risk or of not using the stop loss at times is huge.
Back to the ABCD portfolio – the markets continue to remain at higher levels, hence not letting us any good entry points. We shall do a quick recap of our selected stocks, without making any fresh investments.
ACC – The stock is currently trading at the higher end of the Bollinger Band on the daily charts, and is in overbought territory. The stock needs to trade and close above Rs 1,365-odd levels for further gains. The weekly charts indicate a positive bias as long as ACC trades above Rs 1,310-odd levels.
Bharti Airtel – The stock has given a fresh breakout on the daily charts, by closing above Rs 313. However, the next immediate resistance for the stock is at Rs 319 – which is the 200-DMA (Daily Moving Average). The short-term bias is likely to remain bullish as long as the stock trades above Rs 313-odd levels.
Cipla – The stock is currently testing support around the 20-DMA at Rs 384-odd levels. In case, the stock is able to sustain above Rs 384, the stock can attempt a rally towards the higher end of the Bollinger Band at Rs 395 or even slightly higher to the 200-DMA at Rs 403.
DLF – The stock is facing some resistance around the higher-end of the Bollinger Band on the weekly charts at Rs 180-odd levels. In case, the stock is not able to clear the hurdle, the stock can slip towards the 20-DMA at Rs 155-odd levels.
Happy trading, happy investing – Be safe by using the stop loss always.
Disclaimer: Trading is a risky business. The author intends to only share his views on market trading strategies. Readers are advised to do their own due diligence before entering any trades.