Here is a piece of news that could be music to your ears if you are invested in Saregama India. The stock has been very active on the bourses in the past several days and witnessed a huge 117% move in one month. Much of the 91% move has come in the past seven trading sessions.Today, the stock surged 7.62%, or Rs 11.15 to end at Rs 157.50 on the BSE. Intra-day it touched a 52-week high of Rs 160.95. There were pending sell orders of 81 shares, with no buyers available.
Why the run
Bull of the week: Stock that gained 91% in 7 days
On Thursday (August 19, 2010 ) Apurv Nagpal, MD, Saregama India told CNBC-TV18 that the company expects a 50% jump in its profits and a 20% rise in revenues in the current financial year. The company is betting big on its next big release Jhootha Hi Sahi, a romcom directed by Abbas Tyrewala with John Abraham in the lead. Saregama, he said, had put in Rs 40-42 crore on the film.
How to play the stock now
Avinash Gorakshakar Of Anagram Capital said given the price rise, it would make sense if somebody got into the stock little earlier. He advises to take some profit off the table. "I think there is going to be some profit booking, people are not going to just look at paper profit, so some amount of profit booking is definitely going to come in."
Rahul Mohindar of Viratechindia believes the stock, in the absence of any trigger, has moved due to some insider information which may trickle in little later, but the volumes have been phenomenal. "We just can't ignore the kind of price rise and the volume rise at the same time. But buying at Rs 150 makes it very risky," he said.
At this juncture the risk-reward ratio is against you and targets are technically above Rs 150-160, he said. "Those who have been in this ride should take some profits. Those who want to still push this a little further need to be using something like a trailing stoploss. So, Rs 127 is a critical level which you could be working with," he advised.
Why the run
Bull of the week: Stock that gained 91% in 7 days
On Thursday (August 19, 2010 ) Apurv Nagpal, MD, Saregama India told CNBC-TV18 that the company expects a 50% jump in its profits and a 20% rise in revenues in the current financial year. The company is betting big on its next big release Jhootha Hi Sahi, a romcom directed by Abbas Tyrewala with John Abraham in the lead. Saregama, he said, had put in Rs 40-42 crore on the film.
How to play the stock now
Avinash Gorakshakar Of Anagram Capital said given the price rise, it would make sense if somebody got into the stock little earlier. He advises to take some profit off the table. "I think there is going to be some profit booking, people are not going to just look at paper profit, so some amount of profit booking is definitely going to come in."
Rahul Mohindar of Viratechindia believes the stock, in the absence of any trigger, has moved due to some insider information which may trickle in little later, but the volumes have been phenomenal. "We just can't ignore the kind of price rise and the volume rise at the same time. But buying at Rs 150 makes it very risky," he said.
At this juncture the risk-reward ratio is against you and targets are technically above Rs 150-160, he said. "Those who have been in this ride should take some profits. Those who want to still push this a little further need to be using something like a trailing stoploss. So, Rs 127 is a critical level which you could be working with," he advised.
