In last two weeks, stock that has gain most attention of the market is of Infosys. Vishal Sikka of Infosys gives resignation from his CEO post due to some internal problems between board members and co-founders. Under the leadership of Vishal Sikka, Infosys was growing with a good CAGR and helped to archive a new height in IT space. But now, co-founder Nandan Nilekani has been appointed as the new chairman of the company.
However, all this action take placed in the company gave a good chance to traders as they could buy Infosys around Rs.850 which has now rised to Rs.915. I don’t think that Infosys would deliver a great return in 1-2 years. But the fundamentals that company have, i think the price of Rs.1050 is a suitalble level for short-term which is 15 percent more than current price. Buyback of around Rs.11k crore is also coming soon at a price of Rs.1150. Thus, i think a trader or a short-term investor may enter in stock below Rs.950 with a target of around Rs.1050. However, a trader shouldn’t forget that this target may take few months also.
Avenue supermarts, operater of D-Mart has rallied over 20 percent in just few weeks. At the time of issue, i adviced to all my users to subscribe the IPO. Even when it got listed at Rs.600, there was a remaining opportunity for investors to hold this stock for long-term and therefore, i suggested to book half of your profit and hold remaining for long-term. But now when Avenue supermarts has risen as much as to Rs.1050, valuations of stock looks really high.
The core reason behind such rise in stock is of future growth expectations and potential that company consists. However, other retail companies stocks have not grown like D-mart since its IPO listing. Moreover, i think there is limited upside remaining in stock. And focusing on the risk and future potential that stock still have, i would advice those who have shares of D-mart since its IPO to book 70-80 percent of your profit at present levels. One can also book all of their profit from stock and can reinvest in other fresh IPOs such as Cochin Shipyard or can invest in other low-priced stocks.
In last one year, many Financial stocks delivered so good returns that many of them get doubled in less than one year. L&T Finance is one of them who started his journey of delivering good returns from level of Rs 50. Around 10 years ago, Pharma sector and IT sector were leading the market gains which came to end around 2015. The buying gradually changes in 2015 and from 2016, it started to came in Financial and Steel sectors.
Now the point is whether investor should hold their investment in NBFC sector or book profit. Taking long-term perspective, i don’t see any hurdle in NBFC growth especially those who operates in multiple segments. And in short-term perspective, you will find many opportunities to enter in NBFC at lower levels after every short rally if buying is going on from Big Hands. Therefore, i would advice to keep profit booking at every resistance levels and can try to enter again at lower levels.
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