1 week ago
Nilesh Jain Advises Profit Booking Amid Auto Rally
Some auto stocks have made investors three or four times their original money.
Nilesh Jain said investors should protect those gains.
They could sell part of their holdings or keep the shares with trailing stop-losses.
A trailing stop-loss is an order that helps limit losses if a share price falls.
Jain still liked Sona Comstar and Samvardhana Motherson.
He said both charts looked strong and gave possible near-term price levels.
He was less positive about Ceat because it was moving sideways.
The main idea was to keep strong stocks while reducing risk from weaker or overly large positions.
Nilesh Jain advised investors with large auto exposure to book partial profits or use trailing stop-losses.
Sona Comstar remains a preferred pick, with a near-term target zone of 860-880.
Samvardhana Motherson International was also viewed positively, with a target of Rs 180-190.
Jain recommended 3-4% trailing stop-losses for Sona Comstar and Motherson.
He said Ceat was moving sideways and suggested investors could exit long positions.
- Who
- Nilesh Jain of Centrum, responding to a BTTV viewer's portfolio question.
- What
- He advised investors in auto and ancillary stocks to consider partial profit booking or use trailing stop-losses, while favoring Sona Comstar and Samvardhana Motherson over Ceat.
- Where
- During a BTTV discussion about a portfolio containing auto and auto-ancillary stocks.
- When
- The advice was given against a backdrop of near-term market consolidation and pressure on benchmark indices.
- Why
- Large gains and concentrated exposure can increase portfolio risk, while some stocks may be losing momentum.
Key facts
- Investor queried about
- A portfolio containing Mahindra & Mahindra, Samvardhana Motherson International, Sona Comstar and Ceat.
- Suggested approach
- Book partial profits and continue riding the rally, or retain positions with trailing stop-losses.
- Sona Comstar view
- Jain said its chart remained strong, with a possible near-term move toward 860-880.
- Motherson view
- Samvardhana Motherson was described as having a very strong chart pattern, with a possible move toward Rs 180-190.
- Risk control
- A 3-4% trailing stop-loss was recommended for Sona Comstar and Samvardhana Motherson.
- Ceat view
- Jain said Ceat was moving sideways and that investors could ideally exit long positions.
Quotes
Nilesh Jain
Centrum analyst discussing portfolio management for auto and ancillary stocks
“book partial profit and ride this rally because the momentum still looks strong.”
businesstoday.in
“ideally one can exit from the long position.”
businesstoday.in
Sources
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