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Breaking

Monday, 19 June 2017

My Portfolio: Stock 1: Bought Rural Electrification Corporation Ltd. on Fundamental basis

Hi, Today bought RECLTD: Rural Electrification Corporation Ltd., 17 shares @ 188.65,  for Investment purpose, So total value approx 3000 rupees or 3K


Will add more next month or as per chart.

This I bought on Fundamental basis and entry  made on technical basis.

That's Y i am posting this on "Fundamentals" section

So what exact fundamentals I seen? Here given below ...!

Positive:
ROE : 28.11
P/E : 6
P/B : 1.28
PEG: 0.47
Pledged Shares: 0
Div. Yeild: 9.13 %
Negative:
Debt/Equity : 6+ (But this sector usually high, as they borrow money for lending to others)
Promoters Holding: Decreased
Last Quarter: Under Performed

So on seeing ROE and Financial Performance YoY, I think this stock can give good returns.

more about RECL you can get from below link.

RECL Official Site

So what exactly made my entry Point?  To understand this lets C below chart.



As per the Day weekly charts, its consolidating near Fibonacci levels and Took Support of previous high of March 2015.

Lets look day chart a little closer.



Here RECL is getting consolidated near fabinocci line from few sessions and  tootk support@ bullish bar and last three days showing Bullish reversal and latest close above fabinocci level, which ia s perfect time to grab a stock

Conclusion:  Point to remember

1. The selection is on fundamnetal basis not on technical basis
2. Only technical used to time the entry
3. Bought 30% qty only, will be added more on future scenarios
4. No SL as this is fundamental call and will be added more on dips
5. Positions will be closed only when there is change in company policy or fundamentals


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