The prices were 'already' discounting' a good result and hence when the results were out, the stock fell. Many fundamental analysts / investors may find this hard to digest .. But lets leave that to their own judgement.
The stock price of TCS seems to be suggesting exit by Investors at current levels.Volumes on negative days are rising. Time to be cautious.
Essentially, the risk of holding the stock is now much higher than it was a few months back. And, as I often point out in my workshops, the investing game is more about managing risk than about earning abnormal returns!
A break below Rs 775 should trigger further selling pressure which may take the scrip to near Rs 700 (or sub-700) levels. Positional traders may want to keep their stops near to Rs 815/- after the break out.
Many other stocks are suggesting sell signals while there are some few which are actually giving buying triggers. We shall be discussing these today in our ITG meeting !
Interestingly those who track currencies too may want to check some interesting developments on that front ! .. more of this in subsequent blogposts. . .
Happy Trading !!
CA Rajiv D Khatlawala
ValueTrade Academy
www.investogyan.com
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