Jagoinvestor
March 26, 2009
Akruti crashes by 50% , Finally it happened
Akruti crashed by almost 45-50% today . This happened inspite of strong global clues and strong rally in markets which touched 3100 levels on nifty .
From the levels of 2250 some days back , today its near 900-950 levels .
This crash was due anyways … Some days back I had warned that there was a Evening Star seen on this stock charts and It should be seen as a shorting Stock on every rise . read it here : https://www.jagoinvestor.com/2009/03/akruti-city-plunges-25-in-early-trade.html
Read my previous post how to invest in this market
Evening Star shows you the shift of power from bulls to bears . Markets were near expiry and all the punters who were holding the stock from the time of strong rise which started , had to clear there positions and hence a sharp selling was expected . No Surprise that it happened today , As markets were rising , every short term long holder wanted to clear his positions , this resulted in panic selling and stock went down so much .
Now it has come to its normal levels and with this strong rally , it has good chance to move up in coming weeks . Dont over invest incase you want to invest .
You can put 10% of your capital in this and liquidate half position after you are in 20-30% profit . It can give some quick gains later . Dont be greedy , sell in profit once you are in 50%+ profit . otherwise one fine day again it will drop heavily and you will be left crying .
Why am I now suggesting to invest in this , last time I said stay away ?
Investing or trading should be done on high probability trades . This stock went up heavily and then corrected a lot to come back to normal levels now . This is a ideal time to take calculated risks , The risk/reward of this trade would be worth taking .
It does not mean , you cant loose from here , why not !! , but its worth taking that risk , because profit potential is very good . Have a logical stop loss and once its hit , get out with loss .. first loss is the best loss .
Did any one make profits or loss on Akruti ? Share it with other readers , so that everyone comes to know about it .
Read my previous post how to invest in this market
hmm.. Agreed .
If you see 4-5 months daily charts , you can make up a trend line which connects 15th Jan and Mar 3 lows and gives us a support area of 1000 . where the stock found support after making an intra day low of 700 .
Stock has long term support point at 600 levels . So falling from that point looks tough (though it can happen) .
Now the best indicaton would come from next some days.
The reason for this much big fall was mainly because of short covering and because its removed from F&O .
If 1000 levels hold for this stock , then we can see higher levels .
If it sustains below 1000-900 , its a sell signal .
All prices are from NSE (not BSE).
What do you think ? Whats your basis of judgement ?
Manish
I guess we are forgetting that today was when AKRUTI was supposed to be delisted off the FNO…
i dont think this stock can be bought even at the current levels…it shld fall a good 40% more…arnd 500 levels shld be a reasonable rate…prob lower
They always say, “Nobody gains from a squeeze.Especially the ones who set them up at the first place”
Akruti was setting up, as a bear squeeze for quite some time.Only a few stocks were being taken as delivery and the rest all was squared off in the same day.Result pure speculative play. And then today was the FNO expiry. Those who trapped the bears had to square up their positions.
@jumpup
You got it correct … The main problem was that actual ratio of deliverable quantity and traded quanity was widening .
Most of the shared which were being traded were quared off on the same day , which indicated speculation ..
SS of timamo.blogspot.com also discusses this matter with some graphs at
Manish