I had bought the shares of Bajaj Consumer Care in December last year for an average of Rs 172.30. After that the price has come down. Should I buy more, or should I run out of stock?
Dr Mallesh
Bajaj Consumer Care (₹140.65): The broader trend for this stock has been largely down since 2018. However, an important long term trend support is approaching at ₹126. It has to be seen whether this stock can stay above this support or not. A jump from ₹126 and a subsequent rise of ₹185 may take the prices to ₹240-250 in the next six months. A break above ₹250 will then pave the way for ₹320. Such a move would indicate a double bottom formation on the chart. In that case, the break above ₹320 would be very quick to revisit ₹500-520 in the next two years.
On the other hand, if Bajaj Consumer Care falls below Rs 126, it may drop to Rs 85-80 in the next two-three months. You can consider buying more for ₹133. Place a stop-loss at ₹108 and follow it strictly. As the stock jumps from ₹126, move the stop-loss back to ₹190 as the stock moves up to ₹235. As soon as the stock touches ₹310, move the stop-loss to ₹230. You can consider exiting your 30 per cent stake at ₹315. Move the stop-loss to ₹310 for the remaining 70 percent when the stock moves up to ₹380. Exit balance at ₹490.
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Published on
June 04, 2022