Wednesday, September 23, 2009

PORTFOLIO ANALYSIS - SAMPLE 5 (DILRAJ SINGH)

Today we will analyse portfolio of one Mr Dilraj Singh who is new to the stock market. It will be my endeavour to suggest the best possible way to maximise profit for Mr Dilraj. Hopefully in a year's time Mr Dilraj would have become a strong investor in the stock market. Here we go!

IFCI
Holding 220 shares at an average price of Rs 53. Closing price on 22 Sep 09 was Rs 57.65
1 mnth tgt- 65, 6 mnth tgt- 85, 1 yr tgt 115
You should book your profit once at 65 if IFCI runs up in next few trading sessions. If not, then try and buy 220 more shares at 45 level. Exit your complete position at the target of 115.

Suzlon
Holding 120 shares at an average price of Rs 100. Closing price on 22 Sep 09 was Rs 100.8
6 mnth tgt- 180, 1 yr tgt- 320
Suzlon is a very good buy to keep in your portfolio for long term. Keep adding to your position at every dip till 80. After that hold for one year to reap extraordinary profit.

PTC
Holding 50 shares at an average price of Rs 83. Closing price on 22 Sep 09 was 88.35
6 mnth tgt - 160, 1 yr tgt - 200
PTC may fall down to 70/75 during the coming correction phase of market. That shouldn't worry you because then you will have an opportunity to pick up more shares of PTC. Sell your position only at the target of 200.

Power Grid
Holding 50 shares at an average price of Rs 117. Closing price on 22 Sep 09 was 108.
6 mnth tgt- 160, 1 yr tgt 215, 2 yr tgt - 260
Power Grid can correct right down to 80 level. Keep adding to your position from 90 onwards till 80. Sell your complete position at 215.

RNRL
Holding 30 shares at an average price of Rs 76. Closing price on 22 Sep 09 was 90.65
6 mnth tgt- 145, 1 yr tgt- 190, 2 yr tgt 250
RNRL may correct to 70/75. You should keep an eye on it so that you may pick up more of this scrip at 75. Sell the scrip at its 1 year target of Rs 190.

GVK Power
Holding 50 shares at an average price of Rs 49. Closing price on 22 Sep 09 was 46.6
6 mnth tgt- 65, 1 yr tgt- 100
GVK Power is very weak if it trades below 44, since the chances are that the scrip may fall down to 27/30 level. Keep a strict mental stop loss of 44 and exit your position, thereby taking a loss of Rs 5 per share. Then pick up the scrip at 30 and hold for 1 year's target of 100.