Long in Kotak - Breakout is likely in the next few weeks. I recommend waiting for a breakout for derivative traders.
For long term equity traders, start buying in chunks. How I do it? When I come across this kind of an opportunity, I would allocate 5% of my total equity capital. Let say the total capital is Rs 1Cr. 5% of which is Rs 5 Lk. I will divide this Rs. 5 Lk into 5 chunks of Rs. 1 Lk each and do the following:
1) Buy now using Rs 1Lk
2) If the stock moves to the bottom of the channel, I will deploy another chunk
3) If the stock moves to top of channel and before breakout, will deploy another chunk
4) On breakout confirmation of the channel another chunk
5) After breakout and retracing, the last chunk
The following are some of the must conditions
1) Company must have high corporate governance standards
2) I generally don't care much about the market cap of the company, but more the better
3) The products produced or the services provided should be in sync with the economic cycle
4) Trailing stop loss is a must
This may not be a perfect approach but I am comfortable with this.
Good Luck !!
For long term equity traders, start buying in chunks. How I do it? When I come across this kind of an opportunity, I would allocate 5% of my total equity capital. Let say the total capital is Rs 1Cr. 5% of which is Rs 5 Lk. I will divide this Rs. 5 Lk into 5 chunks of Rs. 1 Lk each and do the following:
1) Buy now using Rs 1Lk
2) If the stock moves to the bottom of the channel, I will deploy another chunk
3) If the stock moves to top of channel and before breakout, will deploy another chunk
4) On breakout confirmation of the channel another chunk
5) After breakout and retracing, the last chunk
The following are some of the must conditions
1) Company must have high corporate governance standards
2) I generally don't care much about the market cap of the company, but more the better
3) The products produced or the services provided should be in sync with the economic cycle
4) Trailing stop loss is a must
This may not be a perfect approach but I am comfortable with this.
Good Luck !!