Q&A_ MRPL, how did it move so violently and next move from here?
Namaste!
I want you to pay attention towards 3 arrows.
1. Black arrow: This candle had an increased selling volume (resistance), which was broken by 3rd weekly candle followed by 2 weekly candles of consolidation.
2. Blue arrow: This is the candle where bulls entered with approx double the volume and were able to close above the high of blue candle.
3. The rally continues.
4. Orange arrow: 1st time, sellers were powerful enough to push the prices, up to the low of any high breaking green candle..
Q: What could happen from here.
A: Profit booking will come as well as it has started from current prices. Look, the stock can not just go up and up. It is pending for profit booking, then it may consolidate for some weeks. Then another bullish momentum is expected.
Q: What should current position holders do?
A: a. You can book the profits right now, b. or you can trail your SL below low of high breaking daily green candle (keep trailing for future candles as well).
If following my decision you make profit, nobody cares, but if you followed my idea and sold, then stock moved another 100%, you will blame me. Reality is nobody can predict the top.
Disclaimer: You're solely responsible for any decision taken in the markets, resulting in financial gains or losses. The analysis I've shared is for informational and educational purposes only.
I want you to pay attention towards 3 arrows.
1. Black arrow: This candle had an increased selling volume (resistance), which was broken by 3rd weekly candle followed by 2 weekly candles of consolidation.
2. Blue arrow: This is the candle where bulls entered with approx double the volume and were able to close above the high of blue candle.
3. The rally continues.
4. Orange arrow: 1st time, sellers were powerful enough to push the prices, up to the low of any high breaking green candle..
Q: What could happen from here.
A: Profit booking will come as well as it has started from current prices. Look, the stock can not just go up and up. It is pending for profit booking, then it may consolidate for some weeks. Then another bullish momentum is expected.
Q: What should current position holders do?
A: a. You can book the profits right now, b. or you can trail your SL below low of high breaking daily green candle (keep trailing for future candles as well).
If following my decision you make profit, nobody cares, but if you followed my idea and sold, then stock moved another 100%, you will blame me. Reality is nobody can predict the top.
Disclaimer: You're solely responsible for any decision taken in the markets, resulting in financial gains or losses. The analysis I've shared is for informational and educational purposes only.
Comment:
MTM is not an actual profit until it is booked. Hence, SL can be trailed at a low of high breaking green candle i.e. Rs 110.
Comment:
Trailed SL is triggered.
Comment:
The upper circuits are just a retracement rally, according to me. The weak hands must be coming in (buying) because of FOMO.
Comment:
Fundamental reason for the last bullish rally: It had extra-ordinary operating profits since the last 3 quarters (Dec 21: Rs1,717 CR; Mar 22: Rs2,941 CR; Jun 22: Rs4,714 CR).
Comment:
If you can get this stock at Rs 25-26 levels, it is once in a 3-4 year opportunity. Investment should not be more than 10% of capital.
Comment:
I expect anyone who is reading my writings to know that there is nothing "certain" in the markets. Neither the %gain on stock nor "out-performance" or "under-performance". There is a risk and opportunity cost involved in both, buying and selling. Selling at any price can often result in "opportunity loss" when the stock moves higher and higher. Human psychology is a culprit here. For e.g. I post any stock which seems undervalued or overvalued to me on tradingview. When anyone makes money on that, they wont appreciate me "a single word". But when they lose or it results in opportunity loss, they are bound to blame me. I don't criticize any person, because I know their psychology has defeated them. At last, there is nothing like "easy money" in the markets. The survival of the fittest holds absolutely true here.