Inventure Growth & Securities Ltd IPO (Inventure Securities IPO) Detail

178. SONMAYA

I have already booked profit at 245 (read Post # 176). I will look for opportunity to re-enter.

Fear & greed are the enemy for traders. Traders should not fear as long as they stick to their pre-determined stop-loss & target.

ravi,be careful while trading in this ipo

Inventure 230

As already indicated, I bought @ 185 & holding still. It moved as per my expecation. I will trail my stop-loss when it moves beyond 250.

Inventure 193

I will buy this in case it falls further, probably around 180-185 with a stop at 160. If stop-loss holds, it could rise to 245, 300 or even 380+.

My medium-term target is 36 or even below Rs.10.

Hi Ravi,
I sincerely appreciate and thank you for the forthright suggestion.

As you have mentioned, it is a large IPO and not easily amenable to manipulation like Inventure or the other recent IPOs.
The global uncertainty is not giving much of confidence to anybody.
The only hope is the brand name.

We will keep our fingers crossed and hope for the best.

173. prakash kundur

It is a big issue. If it breaks Day's Open Price / Issue Price, by default my suggestion is to exit even at loss at the first opportunity.

If it opens well & trades above issue price or Day's Open Price, you can hold with a stop-loss below Day's Open Price or Rs.2 - Rs.3 below issue price.

It is a large issue, if breaks issue price, 90% chance is investors will loose in short-term.

Hi Ravi,

Thanks for the detailed strategy.Much appreciated.
It would be foolish to expect 100% or even anything above 70% success rate.

Also shed some light on how should an IPO allottee go about.
Say for instance L&T holdings.An allotment of 1077*2 folios(different names) under shareholders category.
What is the best strategy to follow.
When should one start unloading
500 shares can be held for long term.Rest to be sold.

Please give us your thoughts on the strategy to ba adopted.

170. prakash kundur

Scenario 4

Stock drops to 90. Again retrces 100, goes up to 120 & then breaches 100. In this case, never hesitate to go short.

Trailing stop-loss is always important.

170. prakash kundur

Keep a simple strategy.

Assume that a junk company comes-out with IPO for Rs.100.

Scenario 1

1. It will break Day's "Open Price" or "Issue Price".

In this case, by default, you should go short with a stop-loss of 105 (assuming that "Open Price" or "Issue Price" is 100).

If the stock makes a low of 90 & trades above low of 90 (assume that 94, 95 etc.) for more than one hour, simply cover your shorts.

Scenario 2

If the stock is making new lows every two hours, trail your stop-loss. If the stock is trading at 90 at 11:00 a.m. & prevailing market price is 80, then your stop-loss should be 90.

If the prevailing market price of stock is 70 at 1:00 p.m. & if it was trading at 80 at 12:00 p.m. then, keep a stop-loss of 70.

You never know the top or bottom of junk stocks. Trailing stop-loss is very important.

Scenario 3

If the stock retraces a issue price of 100 (or crosses issue price or Day's Open Price), then buy at 102 (assuming that issue price or Day's Open Price is 100). Your stop-loss should be 95. Your risk is Rs.7. Considering the risk of Rs.7, you should decide the quantity to buy.

For traders, money management is important. If you have some planning to trade, out of 10 trades you make in five & lose in five. When you make, you profit Rs.100, & when your analysis does not work, you could loose Rs.50. At the end of 10 trades, you should be able to make Rs.50.

Don't expect 100% success rate. Trading is a probability. Studying the psychology of other players is important. When chart shows a stop-loss of 100, 90% chance is it will hit! You should be able to decide upon psychological stop-loss after considering chart stop-loss.

Hi Ravi.

Welcome back.

You are so right with the change in strategy for opening day.

Inventure has been such a revelation.It does not fundamentally deserve the price at which it is quoting now or even the issue price.
On the listing day once it started coming down, everyone thought that the game is over and started shorting.
Did they get a thrashing,Oh my God.What an upmove.
Next day it hit the 20% upper circuit again catching all the shorters off guard.
Even today it is holding its head high.But it cannot remain at that level for long.It has to fall and it will fall badly bruising so many on the way.

But the point is what will the IPO applicants do in such a topsy-turvy situation??

If you sell the allotted shares it may be too early even at a loss or if you hold on for long on the opening day it can crash further and entail deeper losses.

With your vast trading exposure,technical analysis skills,market knowledge,human behaviour etc and even common sense(which is not so common,to mention the cliche)please come out with a strategy.Of course we will not hold you responsible if the strategy does not work.
It is our mental frame of mind,our guts and our shares(money) that we are playing with.If we make money as is obvious you wont even get a single rupee.
If the strategy works kudos to you and you can have the satisfaction of being one up on the game.
This is like a game of chess or catch up.Sine you are from Bangalore you will understand the 'Kalla-Police','Haavu Mungasi' etc.
As seen there is good money to be made or lost in IPO listing day fireworks.
Do put on your thinking cap and come up with a workable strategy.

Look forward to you being active in the discussions again.More so with a ?mark with Sreedhar.

But How is the question??

152. SkDash, 158. KK Natarajan, 160. Durai Raj,Tirupur

Operators game has changed recently.

1. Till 12:30 p.m. juck stocks breach issue price. Chart stop-loss will hit & people will go short.

To counter this, we should know what is chart stop-loss & where to put psychological stop-loss.

By default, we should short with stop-loss. If stop-loss hits, wait for right opportunity.

2. Then, it will recover & crosses issue price.

It is impossible to buy at low. But, when we know that selling pressure is absorbed, then we should buy at little bit high with psychological stop-loss (skill is identifying between chart stop-loss & psychological stop-loss & knowing when selling pressure absorbed.

3. After step # 2, trial your stop-loss as it passes each resistance level. When it crosses resistance # 3, profit is huge!

This has happened in BGlobal & Inventure. Probably, this will happen in future juck issues.

Highlight of my observation is mostly issue price will breach so that Operators will collect shares from retailers.

307. Anonymous Sep 25, 2010 1:20:24 PM IST | Like | Report Abuse

Anonymous's - IPO Recommendations, IPO Comments, Public Profile

BREAKING NEWS - RAMKY INFRA IPO FIXED AT 450 RS LOWER THAN 18 RS FROM 468 PRICE.

GOOD GESTURE ON PART OF PROMOTERS AS THE IPO WAS OVERSUBSCRIBED EVEN AT 468 RS.

IMPLIES RAMKY IPO WILL GIVE THE BEST RETURN AS RETAIL ALLOTMENT WAS FIRM

---
RAMKY Like L&T has given great discount from 468 to 450.Such shareholder friendly after keeping the valuation high

Hi all,
What a stock!!
If someone thought they could short sell expecting a 20% downward freeze they are caught again.When the whole stock market is reeling, our stock merrily goes up by 9%!
Do you need any better example than this to show how small fry can get caught by unknown gale forces.What an operator??
HATS OFF TO HIM.LONG LIVE THEIR TRIBE.

KK Natrajan,
Agreed with u.Keep it in mind next time. BTW did u apply?

Sell sell n sell it at every price it will 125 on21aug

sameerjaipur,
For new issues such as this the stop loss band should be broad. Otherwise it will skip your stop loss. Imagine what would have happened if it skipped stop loss and went down more.
If you had noticed that skip when it was at 220 plus levels it would have been a lottery!

Friends,
I closed my position at 110 yesterday.I put stop loss at 114 but somehow it skipped my stoploss (according to my broker) and gave me additional 4 Rs loss.

Suggested to stay baway from this third class issue.

Some body has to guide how to control onelf on listing day.what r dos and donot dos on listing day.

Dear Ravi,Banglore,

Were you have gone for A long time...?
Anyway happy to see your presence...