February 3, 2009

Investing in RPL in FEB 2009

1 comments

Ronak asks :

I am planning to invest around 1-2 Lakh Rs to buy RPL shares. At the current rate @83, do you think I should go ahead and buy some shares? like 500-700? or should I wait for sometime to lower the rate?

My Ans :

Hi Ronak

By seeing the charts i can see that its in a trading range of 70-93 , 70 is the support level . and 95 is a resistance level . see its 1 year chart



The price is below its 50 Day moving average , so it is still in downtrend .

Long term low of this share is around 65 , so looks like its very difficult to fall below this .

With markets still unpredictable in short-medium term , the share is expected to dance in this same range of 70-95 .

So the best idea would be to buy it either at support level prices of 70-75 , or after it breaks up from 100 levels . the best thing i would suggest it to invest your 25% money near 70-75 levels .

I hope you got what your wanted . Better we discuss things like this on a mail or i would run a separate blog for this kind of analysis . Understand that the small analysis i gave you is purely technical and not fundamental . it is only indicative and probable .

Learnings

Before investing in a share , looks for its resitance and supports levels (Read about Support and Resistance) and its range , Seeing this small thing can help you to make better investments.


Manish

Comments

1 comments to "Investing in RPL in FEB 2009"

Ronak said...
February 3, 2009 at 6:54 PM

Hey Manish,

Thanks for your detailed explanation. I would be looking to buy RPL for long term perspective and keeping that in mind, i belive the current price is a good buy. Though it is unpredictable, investing around 25% of money would still be a good investment in long haul.

I will mail you if I have any other queries but currently I am going through all your articles and found all of them excellent, especially the ones on the insurance. Thanks for the great work.

- Ronak