In our recent Technical Trades March report for Technical Traders Club had covered Ambika Cotton as a breakout trade.
This is how the chart was placed.
One can clearly see a sideways consolidation or can call it a triangle/cup and handle and so on. Volumes were increasing showing accumulation by smart hands with a little price move.
Post the breakout this is how the stock looks after a 30-50% jump.
Technically one could see accumulation and trade setup but definitely not expect a jump of 30-50% so soon but that is the good part of trading on low risk high reward technical breakout setups. Sometimes it could take a few months as expected on initiation of trade and sometimes you get lucky with a quick jump.
There was a little bias of liking textile stock as i have been bullish on Vardhman Textiles and KPR Mills on a bit of fundamental and technical reasoning.
This is the post on KPR Mills which has moved nicely from 280-330 to 500-550. Both the stocks are part of Big Value 2.0 portfolio from 420-450 and 275-290.
One of the reason for Ambika Cotton Mills moving up can be this block deal.
ValueQuest India Moat Fund which is managed by Sanjay Bakshi – a veteran value investor bought around 40000 shares of Ambika Cotton Mills at Rs. 699 each, laying out an investment of Rs. 2.79 crore.
P.S – Do note i have vested interests in all the stocks i mention and my views can be biased. Do your own research and risk management . Read the disclaimer and disclosure.
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The Investing Lab-Bridging Theory and Practice–Training Program Bangalore 28-29th March 2015 !!
Do book your seat at the earliest –
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DISCLOSURE
•Nooresh Merani
•Securities covered above: Ambika Cotton, Vardhman Textiles, KPR Mills
•SEBI Registration disclosure – Registration for RIA under Process
•Financial Interest:
•Nooresh Merani and his family/associates/ analysts do have exposure in the securities mentioned in the above report/article.
•Nooresh Merani and his family/associates/ analysts do not have any financial interest/beneficial ownership of more than 1% in the company covered by Analyst.
•Nooresh Merani and his family/associates/ analysts have not received any compensation from the company/third party covered in the above report/article ever.
•Nooresh Merani and his family/associates/ analysts has not served as an officer, director or employee of company covered in the report/article and has not been engaged in market-making activity of the company covered in the report/article.
•The views expressed are based solely on information available publicly and believed to be true, assessed on Technical Analysis and view of the Author . Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
•Also read the detailed disclaimer – https://nooreshtech.co.in/disclaimer
