- Wealth PMS (50L+)
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.