Godrej Properties stock has made a stunning move of 54% since Nov 05, 2020. I am glad I covered the stock right on Nov 06 2020 and here’s one simple lesson we can learn from the price action.
When a market gets enthusiastic about a theme after a long long time, there will be initial doubts before a clear move. And one should be ready to have some patience during that period of self doubt
Let me explain what I mean by this:
Real Estate has been out of favor sector for a long long long time but it grabbed my attention due to some interesting price action moves around the last week of October and hence I covered it back then.
One of the stock I covered: Godrej Properties with buy on dips recommendation around 960-980 but here’s what happened – The stock came crashing down to 912 š
Source: Chartalert.com
I covered the stock again on Nov 06 2020 with the following recommendation:
The whole premise: The stock will make a move if the time has come. That’s precisely what happened. Here’s what Godrej Properties stock has done since Nov 05.
Source: Chartalert.com
It has been a picture-perfect move since then and Godrej Properties is the leadership stock when it comes to real estate space.
Fundamentals don’t drive stock prices.
How people perceive those fundamentals drive stock prices.
As a market participant/trader, keep an eye on how the market views the fundamentals than being obsessed with your own version of fundamentals. It means look at the price action and it tells you without bias what the market thinks about the stock. Once you read the price action, go and find the reason why the market has such a view on the stock, and be aligned with it.
This is the level one mind training every individual requires to be in sync with market thinking. This is the real fundamental of Investing. I call it Science of Stock Price Action
If price action fascinates you – then Science of Stock Price Action is a great place to start.
Disclaimer ā The state of the market notes is Deepakās perspective on the market. The column is purely for educational purposes. 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