There is a very famous saying: The Stock takes the stairs up and once it gets scared, it takes the elevator down.. The Button he hits: PANIC FLOOR
It seems HDIL investors witnessed the same in last few days. Here's the chart - see for yourself:
It took 5-6 months for stock to reach from 52 to 100 but it gave up all the gains in less than 6 days
What is the worst thing you can do?
Do Bottom Fishing in such stocks and hunt for Value :)) You never know what's going to happen when stock behaves in this fashion. It's like somebody has fallen from the roof and you are making a party plan with him. It's much better to wait and watch than jump thinking it as juicy opportunity because you never know. Remember: When in doubt, Stay Out
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers