Let me begin from the start. On 10 Aug 2010, I had recommended buying Reliance Aug Fut to my subscribers at http://www.stockezy.com/ at 990/1000. This decision to buy at 1000 level was result of awe for the company and not any technical reason. On the contrary I had aired my technical view at the site on 6th Aug. Reproduced below is relevant comments section of this link http://www.stockezy.com/opinions/6934/buy-ambujacem-aug-futures/ which explains it all :-
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Mam. I have one lot reliance @ 1017. bought it yesterday. what are your views for reliance? Its been making new lows everyday.
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@Shantanu. Reliance is technically in down move. It has strong support at 960. So broadly it will come down to 980 before it manages a technical bounce. So try and get out of this position at around 1020.
”But as I mentioned earlier, the fundamentals of the company got the better of my senses and I was as if mesmerized into recommending Reliance, believing 1000 level to be mouth watering level, against my own technical reading. Result was that on 18th Aug the scrip slid down to 962.4 and from there bounced back to 997.4 on 20th Aug. So much profit could have been realized if only I had not got over-awed by name of the company. While trading stock futures it is absolutely imperative not to get carried away by fundamentals of a company. In fact 12 months back I had laid down certain Laws to be observed during trading in stock market. In this trade I violated Law #3 enunciated in this post of mine http://www.stockezy.com/opinions/3514/Starter-Kit-For-Newbie-Investors--Laws-of-Nature/
Finally on 30th and 31st Aug when Reliance made a low of 920.9 we had to resort to buying one lot each of Reliance Sept 1000 and 980 Call options. This was to facilitate easy exit from the combined positions of Futures and options. That was achieved and today in trading Reliance finally made a day high of 1004, revisiting our buy price level. Uneasy actual trading details are here in this link http://www.stockezy.com/opinions/7024/buy-reliance-aug-futures/