Shakti Pumps - 3yr Breakout Retest

9 июл. 2021 г.

The stock gave a clean rounding bottom breakout with big volume bars, even created a cluster of volume (a good sign). Pulled back to breakout area on low volume. Stabilizing around the breakout retest. The volume RSI is at its support level, making a possible double bottom. Could start its run up when markets end the bearish streak in coming days.

FUNDAMENTALS
Excellent fundamentals. Going to benefit from Govt scheme (KUSUM) meant to replace Agriculture Diesel pumps with Solar Water pumps and Solarise Grid connected Agriculture pumps. Did 50000 out of the govt target of 1lakh in FY21.
Though Govt is targeting for 20 lakh pumps by FY22 (this is unlikely to happen). Still, FY22 targets will easily beat FY21 and hopefully more will happen in next 3 years while they are in power.


SL: Depending on your risk appetite: Below Weekly BO Candle / Below Daily BO Candle / 50% of Weekly BO candle / Below 20DMA
TGT: After a 10-15%+ vertical move, breakdown of 20DMA (on a daily close basis)

BUY GUIDANCE:
Never ever buy before 3PM. I have been burnt many many times. Try to buy between 3:15 - 3:30PM, later the better.

SELL GUIDANCE:
Selling in Profit:
Sell earlier in the session when the prices are higher, around 11AM.

Selling at SL:
Give your stock a chance to recover by end of session. If it doesn't recover, sell anywhere between 3:00 - 3:30PM.

Note: I reserve the right to be wrong.

DISCLAIMER:
I am not a SEBI registered analyst. Please consult your financial advisor before investing.