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Tar's avatar

I love these Market Notes - high value information in a short read! The insights shows your years of market experience - its not easy for someone new to uncover these. Thank you for writing and sharing.

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Prabhakar Kudva's avatar

Thank you so much!

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Mohit mendiratta's avatar

Happy go see four stocks i have converted as same as yours.

Jyoti lab

Sml isuzu

Zen tech (prev qtr)

Itd cementation

Rest is thomas cook rpsg venture and electronic mart india.

Your market note aspires small investors like me.

Thanks a lot

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Prabhakar Kudva's avatar

What is your strategy with these stocks ?

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Mohit mendiratta's avatar

Selling strategy for earning surprise .

I generally buys with in 3-4 min of results in market time or at open price for post market results

Post market result - if stock does not cross the open price upto 10 am then start selling.

If stock crosses the open price for at least 4-5 min then wait for 2 days. If it is still negative from open price then sell.

Market results- my buy price as it is with in 4 min i consider it as best price (just like open price). If the stock is showing negative till 3 days from my price then sell.

So quick selling strategy is because there are more than 30 earning surprises per qtr which i like.

Coming to your question:

After this try to find the earning surprise catalyst for

the stock which has made through i.e. why it has given earning surprise. Is it sustainable.(I generally dont know the answer).

Try to hold through the qtr and till next result.

If the result is flat or poor then sell.

My Buying strategy :

M cap -300 to 30000cr

Sectors to avoid generally(realty, holding company, pure commodity companies, finance company) exceptions to this if hold by eminent investor like mukul agarwal sir,ashish kacholia sir etc.

Sectors to focus on technology, pharma it, fmcg,flavoured sector (currently defense capital goods).

Try to buy the company which is consistent ( definition given by raamdeo agrawal sir in wealth creation study)

Main comfort is valuation forward pe should be <30. Operating profit growth > 35-40% yoy.

The bad the sector like infra construction the lower should be the forward pe like <20 in this case.

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Prabhakar Kudva's avatar

Good work! Look at volume on the earnings day it should give you good clues on which ones are sustainable and which ones are not.

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Mohit mendiratta's avatar

Sir,

How many times than avg the volume can be considered good volume?

Do i have to see delivery volume too or just total volume?

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Mohit mendiratta's avatar

Please reply sir!

Will be very helpful for me

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Prabhakar Kudva's avatar

Sorry missed this. It's not about a number but it should be significantly higher than the last 1-3 month daily average.

No i don't look at delivery volume as you cant get that number during market which is when you have to act.

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