Stock of the Day – BF Utilities

The best entry for a stock is when it breaks through a Resistance level which has been tested multiple times in the past. Then again, this is no guarantee to the trade being profitable but do this long enough, and the odds will be in favor of you. 

BF Utilities is just below one such major resistance and if broken, can result in pretty strong gains owing to its resistances coming at much higher levels. Of course, there is also a risk factor in the sense that this stock is not as Liquid as many other stocks in its sector. In fact, during its recent surge, it has on many days been locked on circuit which while indicating strong demand for the stock is not a sign that one should be comfortable with. After all, if it starts to hit circuit on the way down, it would be tough to even get out at a loss (and even his has happened in the past in this very stock). All in a all, a high risk (and probable high gain) stock.

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About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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