HDFC Bank - still a good buy…
Posted on June 15, 2008
Filed Under Investment Guide, Market News & Discussions |
HDFC Bank has seen a great dip in recent week and is trading close to 1140 down about 200 rupees that is 15% in last 10 days or so. This is nice time to buy it. While many think that it will be foolish to buy as the stock is falling continously from past 3 weeks, well, we need to realise the potential of the stock to strike back. The stock market has shown a negative sentiment in last 2-3 weeks and many big-B’s are in red. If the stock market shows more disappointment, just because of market sentiment HDFC Bank may even go futher down and may touch 1000 in next 2 weeks may be. As a result the current strategy to be on a bit safer side will be to buy only 60-70% of the capacity you want allocate to HDFC Bank. For E.g: you can buy HDFCBank of Rs: 1 lakh then buy only of 60-70K above level of 1100, not more than that.
Averaging out is another perspective altogether and you will see an article on how and when to average out your previous high buy’s. As for now, in this case, if you want to average out your previous buying then wait, it may go down more. But if you havn’t bought it till now, its time to buy - with yout own risk as the market sentiment isn’t strong as it should be for heavy buying.
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