This is a typical example of a stock losing more than 80% from all time high. On January 7, 2008 its highest price was 1940 and on July 2, 2008 it touched a low of 340. This is how a stock can 'reward' an investor if he purchases it at the peak.
"Buying a wrong stock at the right time may fetch you more profits than buying the right stock at the wrong time"
"Buying a wrong stock at the right time may fetch you more profits than buying the right stock at the wrong time"
What's all about right and wrong here? Let's discuss the daily chart below.
One can see the near non stop fall from 1940 to 485.50. The stock was on a minor uptrend since March 24 after this low was formed. On June 27, the stock managed to close below the support level. It formed a new low at 340 on July 2. Now the stock has managed to break both resistances at 469.80 and 485.50 with volumes and currently on its third wave. Technical targets for the stock works out to 623.40.
JP Hydro (55.85):
This too, is available at a premium if you consider the all time high of 143.40. Like Adlabs Film, this stock has managed to break resistances at 46.50 and 49.80 with volumes. The stock is on the third wave and the bullish target for the stock is around 68.75.
Neyveli Lignite (119.30):
This stock has a medium term support at 85.35 and this has not been broken yet. Wave 1 started on July 4 with a low of 90.40 and on July 23 it encountered a bullish breakout. Technical target for wave 3 works out to 154.50.
Punj Lloyd (281.35):
A very interesting "double bottom" formation has occurred in the daily chart of the stock. It's worth mentioning here that the stock is available at nearly 50% of the all time high of 656. The technical target for the stock will be 384.80.
Siemens (575.15):
A bullish "inverse head and shoulder" pattern has been formed and the neckline resistance has been broken with a strong upward gap. Like Punj Lloyd this stock too is available at a premium; nearly 50% fall has occurred in the last 8 months. The next resistance exists at 681.