Now we are talking . . .
Not only are Friday’s “spectacular” gains wiped out, but today’s headline at Moneycontrol says “Bloodbath on Dalal Street: Sensex at lowest level in 2006“. Now what was it I said in my previous post? Predictions range from 8,800 to 8,000 or lower, depending on which TV channel you turn on.
From 12,600 to 9,100 (-28%) in 30 days, and no silver lining on the horizon? With negative sentiment starting to pile up, I’m tempted to start entering selective stocks - only the Sensex/Nifty constituents for now though. The small & mid caps are still more volatile than what my stomach can handle.
Given its relative strength, expectations of revenue growth and good PR even in the current environment, how about BHEL? Perhaps a limit order of 1650, with stop-loss at 1550 and short-term target of 2000?
Beware the dangers of trying to catch falling knives!
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