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Stocks

BHEL reaches sell trigger

BHEL reached a sell trigger today. It’s currently priced at Rs. 1650. After my last call to book 1/4 profits at 1700, the stock rose steadily to nearly 1900, after which it retreated. At 1900, the trailing sell trigger would be 10% below, or at 1710. Today’s a big down day and the stock has opened below this level. Sell.

Note however, that this is a stock that’s good in the long term. So if you get opportunities to buy back at 1500 or below, go ahead. But wait till the price CROSSES 1500 from below it – meaning, don’t buy when the stock is going down, buy when it comes back up, and in the same manner as a trailing stop loss, you can create a buy trigger when the stock goes up 10% from its lows.

This stock call is now closed. At 1650, the profit you should have made is about Rs. 500 on a 1150 investment, about 44%, in about four months.

Disclosure: I owned this stock and have sold in the course of this day.

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  • venu says:

    >Thanks Deepak. Btw, do u have any ideas about entry points for L&T and any other interesting picks in this correction.

    ~Venu

  • Priyanka says:

    >You have an amazing blog here 🙂 Came to your blog from diggindianews.com … Keep posting good posts.

  • Uday says:

    >Hi Deepak,

    I have to take some ELSS mutual funds for tax saving purposes. I think it is right time to buy 40 % of my ELSS purchages. What is your opinion about Principal Personal Tax Saver fund? According money control rankings this fund has given best performance for last one year. If this is not good one, please suggest ELSS funds that can be taken. Thank you.

  • Gunjan says:

    >Hi Deepak,

    All I wanted to ask is about risk appetite. I am a regular reader of your blog, personalfn, rediff and other financial websites.

    I am struggling to come out with risk appetite figure and how much money I can allocate to equity each year. Till now, this exercise has confused me more and more.

    Can you suggest some good funda for this or some article to read about this?

    I had even found one link to some excel file covering every phase of financial planning, but unfortunately the link didn’t work and I could not download that.

    Thank you in advance.