POINT97AMC
Updated POINT97AMC
Updated NIFTY rose about 2.8% last week and closed above its short-term average. The rise was narrow. Most of the stocks we follow are still close to their lows for the past two months, and several made new lows while the index went up. We only buy where a stock has fallen to a clear floor, held it on lighter selling, and lets us set an exit point not far below. This week we are watching whether the index can hold above its recent average, and how results from companies such as AU Small Finance Bank and CG Power are received. If more stocks start to hold their lows, we will put more money to work.
We own GIC Re because it held its low near 310 several times and has since been making steadily higher lows, doing better than the market. It is behaving well so far.
We own IREDA because selling dried up at its yearly low near 103 and buyers have been stronger than sellers since. It is holding its recent gains quietly.
CG Power briefly broke below its two-month floor on 16 October and then closed sharply higher on heavy trading, a sign that buyers absorbed the selling. We want to buy on a small dip near 840.
Grasim has held a floor near 2,850 for two weeks on very light selling, and its promoter group has been buying shares in the market. We want to buy near 2,900.
ABB has made a higher low after testing its support, and buying has outweighed selling over the past month while the long-term trend is still up. We want to buy near 6,800.
We are keeping our current holding as it is. The position is already at its full size limit, so we are not buying more.
We are holding our current position and not adding for now. We will look again if the price breaks above its recent ceiling on strong buying, or dips and holds on quiet trading.