Non-Lending Financial Services has been one of the strongest BULLISH themes in 2019
These stocks have made big bullish moves in 2019 – HDFC Life, HDFC AMC, SBI Life, ICICI Prulife, ICICI Lombard. Most of these stocks now look overbought and it’s quite possible that they might trade sideways for weeks and months before taking off again.
The Good news is that Bullishness in the sector is like a Relay race where the baton is passed from one stock to the next. The baton in the last few months have been passed on to these opportunities –
This is where they stand –
Why CDSL
Source: Chartalert.com
As you can see in the daily chart above – CDSL stock has turned around above 200 dma on pretty impressive volumes. The most encouraging part – the stock has bounced from 200 dma last week on the pullback and also the 50 dma is about to cross above 200 dma which is a BULLISH cross over.
I am bullish because of three reasons – 1. It’s part of the larger Bullish theme; 2. It has turned around above 200 dma; and 3. Bullish moving average cross over has happened
WHAT IF I AM WRONG
One should be out of the trade if the stock closes 5% below 200 dma.
Please do your own due diligence before trading
Hdfc AMC, hdfc life, SBI life, ic ic I proud. Icici Lombard : Some of them have corrected. Which ones do you recommend to add at CMP.? Thanks.
Trading Rule # 1: When in Doubt, Stay Out.
Trading Rule # 2: Be super vigilant when there is doubt
The market is never short on opportunities and one thing I have learned over the years…one should be ruthless and unemotional whenever doubt creeps in.
Max Financial stock saw a big sell off this week.
Now, you can do two things:
1. Sell and move on because there is an element of doubt. There are lots of other opportunities in the market
OR
2. Keep a tight stop loss below 490 and be ruthless in executing it and hope that it was just a rumour that bought the stock down and stock will recover in no time
I will be more than happy to take a profit now on CDSL. Trade +32%