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24 Oct 2021 | Trendline Investor | Newsletter 21 |
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Do you have an exit plan for your stocks?Disclaimer: I am not a SEBI registered advisor and this newsletter is for educational purposes only |
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Hello <<First Name>>, Welcome to the 21st edition of the Weekly Trendline Investor Newsletter. In this edition you will find the Market outlook and Top 4 stock picks for the week. Hope you enjoy! It’s high time to start protecting your hard- earned money!Well, last week the Newsletter was titled ‘Will Nifty’s next stop be 18600?’. And, guess what, Nifty hit a high of 18604.45 in a jiffy and cracked more than 500+ points this week. However, all is not over until we hold this week’s low.
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But, what if we don’t hold this week’s low? There are two potential scenarios. One, the market corrects further and Nifty could drop till 17300 in the coming weeks. Two, markets consolidate and go sideways within a range just like the period in Jun-Aug’21. For now, let’s leave these useless predictions aside and assess what your plan will be in case markets prepare for the worst. Back in August’21, when we were in a similar situation, I wrote a short blog on the key things you should focus on. Time to read this again and see if you are prepared to face the worst! Comment on this blogpost in case it helped you reassess your portfolio situation.
Market Breadth:The broader markets seemed to be playing catchup but many stocks cracked big this week and that is also reflective in this indicator. Some of the best stocks that outperformed markets in the last year have started to turn bearish. But, remember, there will always be pockets of strength and if you have a way of identifying them your portfolio can still outperform the markets. So, which stocks do you think will outperform going forward?
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You can find all the daily YouTube live sessions (every Monday to Friday at 11PM IST) along with the review of my Trade with Trendline Investor’ portfolio (which is up 18%), on my YouTube channel. Do check it out. |
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Top 4 Stock picks for the weekStock Performance:For the 80 stocks recommended in the past editions, the below chart highlights the overall stock performance. A total of 24 trades have been closed. Best performers 🏆: Worst Performer ⚠️:
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For past recommendations, stock performance and trailing stop loss updates, please refer to this sheet. You will also find some interesting FAQs that will guide you how to allocate your money to the stocks recommended. 1. Federal Bank Ltd 🏦 |
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| The company provides retail and corporate banking, para banking activities such as debit cards, third party product distribution, treasury and foreign exchange business. The company has been able to grow its revenue and profits steadily over the years. In fact the entire banking sector has been doing well in the last couple of years. Technically, the banking sector looks good and Federal Bank has broken out from a 4-year downtrend and is looking good to head higher towards all time highs of 130 and even higher in the next year.
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2. G R Infraprojects Ltd 🚧 |
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| The company is an integrated road Engineering, Procurement, Construction company (EPC) with experience in the design and construction of various road/ highway projects across 15 States in India. Financially, the company has been doing extremely well and increased its revenues from 916 crs in 2014 to 7844 crs in 2021 while it increased its profits from 55 crs to 1325 crs in the same period. Technically, the stock formed an excellent base after listing and has been in a good uptrend since then. One can look to buy at the current price for targets of 3000 in the next year.
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3. Goodluck India Ltd ⚙️ |
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| The company is engaged in the business of manufacturing and sales of engineering products i.e. heavy engineered structure, transmission and distribution tower, CDW Tubes, etc. The company posted very good numbers in the last 2 quarters and also is expected to do very well financially this year. Technically, the stock broke out from a 6.5 year downtrend and has been consolidating for the last 12 weeks and looks set to head higher towards levels of 400 in the next year.
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4. Transport Corporation of India Ltd 🚌 |
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| Transport Corporation of India is engaged in the business of Freight Transport, Supply Chain Solutions and Transport through Seaways. Financially, there has been no great surprises from the company and it has been able to post steady numbers over the past couple of years. However, the borrowings have reduced from a high of 470 crs in 2019 to 297 crs in 2021. Technically, the stock gave a strong multi-year breakout this week and is looking very good to head towards targets of 800 in the coming months.
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Trend Following Series- Reassess your exit planIn the last 20 editions of my newsletter, I’ve written about tools to help you get started investing, the basics of technical analysis, a couple of strategies that help buy stocks at the right time, chart patterns and one blog on what you should be doing in case of a market crash. I hope you have been enjoying reading each of these blogposts. I understand that right now there is a lot of panic in the markets and if you are one among these people panicking, then you should focus on my blog “Afraid of a market crash? What should you do!”. I’m sure this will definitely help you reassess your plan. This is important because if you don’t have a good exit plan, then you will at some point be very stressed looking at your portfolio go down. So what are you waiting for? Head to my blog right now! Until next week.. Your Trendline Investor! |
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For any queries, please contact me on twitter @dmdsplyinvestor using hashtag #Asktrendlineinvestor. Enjoying the newsletter? Do share it with your friends and family or buy me a coffee! |
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