Net profit of NIIT Technologies grew 66.3% to Rs 111.8 crore y/y. The stock was up 5.2% and has re-breakout today on an above average volume which is a positive sign for upward movement. The 50-day line which is 5% above current price can be the next resistance.
Indeed, a stock making new highs on low volume has likely surpassed any overhead supply that would otherwise have weighed down the stock’s advance. However, any time a new high comes on weak volume, it is a red flag. Simply put, when a stock climbs on low volume, it is telling you there are fewer investors willing to pay the higher price for the stock.
Infosys Q/Q revenue beats the estimates while Net profit was slightly below estimate. On a technical chart, the 50-day line is a strong resistance. If the stock is able to trade above it, there can be a potential uptrend.
Dr Reddy’s Laboratories gained 4.8% driven by sale of API unit in Therapiva. Also, it receives USFDA approval for Aspirin and Dipyridamole post-trading hours can turn out positive tomorrow. On a technical chart, the stock is just 2% away from a rebreakout.
Selling stocks at the right time is a challenging task. It is tough not to wonder what you might have left on the table when taking profits in that hot stock. However, it is better to speculate after the fact, rather than to risk having all of those gains cycle into a loss.
Of course, investors hope their latest purchase will double, triple or more in price. And some will, but such big winners are often few and far between. Continue reading “Don’t Freeze If A Double-Digit Gain Shrinks Fast”
