21:30 – 01/11/2016
The last couple of months there has been a crazy momentum in microcaps/smallcaps. Smallcap Indices on NSE/BSE hit a new 52 week high today.
The blog posts have reduced as no major action in larger liquid names as have been busy trading momentum in microcap/smallcaps and prefer not to mention those names on a public forum as they can be risky too
Some stocks on Radar.
Disclosure – No Personal Exposure yet and not recommended in any of our services. But may do so if and when breakouts take place selectively.
Unichem Labs – A nice cup and handle pattern with a breakout point at 320.
TV Today --- 290-350 range for a year now.
Triveni Engineering – Triangle Consolidation. Can it breakout above 63-65
Shemaroo --- 360-370 a stiff resistance.
KEI Inds -- 125-130 a resistance for more than a year.
Exide Inds – 205-215 a resistance. Can it breakout in the future with some more consolidation here ?
AIA Engineering – 1350 a resistance for a year plus.
Some Market Thoughts
- Lot of microcaps which used to trade 1000-2000 shares are jumping up 50-80% quickly with large volumes and it will seem as easy money if you are trading with small part of your portfolio but remember the way these stocks move easily on the upside it can be at same speed on the way down with hardly any volumes.
- Recently tweeted this - If you have an #exit plan and #riskmanagement the momentum in #smallcaps you have to #ride. If no such #plan just #hide and stay #aside.
- There is no harm in trading momentum and I really welcome such momentum as a trader but at the same time it is scary given such large moves are followed by sharp corrections in stocks too.
- Simply put – Do not leverage in current overheated conditions and be strict with stoplosses. Keeping some cash or increasing cash is also a good idea.
Securities covered above:: Unichem Labs, TV Today , AIA Engineering , Shemaroo , KEI Inds, Triveni Engineering , Exide Inds
SEBI Registration disclosure – Investment Adviser ( INA000002991)
Nooresh Merani and his family/associates/ analysts do not have exposure in the securities mentioned in the above report/article.
Nooresh Merani and his family/associates/ analysts do not have any financial interest/beneficial ownership of more than 1% in the company covered by Analyst.
Nooresh Merani and his family/associates/ analysts have not received any compensation from the company/third party covered in the above report/article ever.
Nooresh Merani and his family/associates/ analysts has not served as an officer, director or employee of company covered in the report/article and has not been engaged in market-making activity of the company covered in the report/article.
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision