Rain Commodities – Momentum Buy – Closed

Update (Dec 17, 2009):

The stock did a great job in achieving the target on day 1 and rising almost 10% on day 1 itself. Its not that I do not like stocks giving returns in 1 day but then when they give, I also want to get out. I have booked profits and if anyholding it should keep a stoploss and get out tomorrow. Ofcourse with Momentum the stock can go any levels but then you should have a target and if achieved get out.

Rain Commodities (Nse symbol: raincom) is again one of the shares which has given good moves with increasing volumes in past month or so. The share went to 230 levels and came down to 200 and now bounced back today to 214 levels. The stock can go to 237 levels in very short term and sustaining around those levels can take it to 248 levels. High risk investors can look at buying this share with a very short term target of 237 and 248. It is important to understand the risk is high and any moves down can mean losses. The person should enter only if he is comfortable and can keep strict stoploss and trail his stoploss on entry and seeing profit.

Stoploss: 200 Levels

Targets: 237 and 248

Entry Price: 214-210 levels

Duration: 10-15 days

As always map the recommendation to your trading style and do the trade.