Now that our markets seem to have stabilised, and thankfully my calls went right :) its time to do a revaluation of the current scenario. . .
Most of the stocks are now trading in their positive MACD's which basically means that the short term trend for these stocks is positive, but the important thing to understand is which of these stocks would outperform. . . I think an important criteria to look at this point of time would be the accumulation / distribution criteria. For e.g. A case in point would be the 2 stocks I own. Indiabulls and Zylog systems. . . Whereas Indiabulls has started to show a good accumulation pattern and it has reflected in its price moving from a low of 77 odd to around 140 within a span of 2-3 months. . . whereas Zylog has not been showing any such pattern and the stock price also has not moved beyond the 100 odd, from a low of around 80 odd. . .
Going forward, there are a couple of things that should be kept in mind:
Fundamental Perspective:
1) Earnings estimates: Assured earnings and some growth
2) PE & EPS : Realistic wrt Industry and markets in general
3) Dividend yield: If it comes to levels above the risk free interest then the stock has to be a good buy. I would keep it at around 10%
4) Stability: Low leverage
Technical Perspective:
1) MACD: Should be positive or atleast moving out of negative territory
2) Accumulation / Distribution: Need to be accumulation patterns
3) RSI: Should be within reasonable limits.
No comments:
Post a Comment