Ongoing IPO season and you’re frustrated about never getting allotment in any IPOs?
Don’t worry!,IPOs provide many opportunities post listing which many tend to ignore.
A Thread🧵 on one of my favourite setups called “IPO or Primary base”
Don’t worry!,IPOs provide many opportunities post listing which many tend to ignore.
A Thread🧵 on one of my favourite setups called “IPO or Primary base”
Key points I look for in an ideal IPO base setup:
1) Listed at a premium, indicating buyers demand.
2) Makes a high within 3-5 weeks on the left side (I prefer stocks having listing day as high).
3) Correction of 20-30% from the high made(these can extend upto 50-60% too).
1) Listed at a premium, indicating buyers demand.
2) Makes a high within 3-5 weeks on the left side (I prefer stocks having listing day as high).
3) Correction of 20-30% from the high made(these can extend upto 50-60% too).
4) Consolidation of 4-8 weeks is ideal post listing (a longer consolidation can also be considered).
5)Buy above breakout of listing day high on huge volumes.
Cheat entries only if consolidation below 8 weeks
6) Risk management is key
Average Stop loss of 7-8% from buy is kept.
5)Buy above breakout of listing day high on huge volumes.
Cheat entries only if consolidation below 8 weeks
6) Risk management is key
Average Stop loss of 7-8% from buy is kept.
7) Averaging up on further base breakouts as even a 3-4x move will not affect portfolio returns if allocation is 1-2%.
8) Exit criteria- Unless stop hit, I trail profits using 50MA as these bases have huge potential.
8) Exit criteria- Unless stop hit, I trail profits using 50MA as these bases have huge potential.
-Breakout above listing day high is most important for a valid IPO base‼️
Knowing what to avoid is half work done:)
A few examples:
Knowing what to avoid is half work done:)
A few examples:
Market conditions play a big role in success ratio of IPO bases as they face huge selling pressure in sell offs.
Most IPO Setups have common characteristic,so some examples of my trades can be used as reference.
#HappiestMinds #Nazara #MTARTECH
Most IPO Setups have common characteristic,so some examples of my trades can be used as reference.
#HappiestMinds #Nazara #MTARTECH
What if stock doesn’t correct post listing?
I will let stock to form a base and buy on the 1st base breakout.
Ex: #LODHA
I will let stock to form a base and buy on the 1st base breakout.
Ex: #LODHA
Many SuperPerforming stocks are IPOs of the last 10 years.
One should add on further base breakouts if the 1st one is missed.
Few of the current bull run are:
#Affle #Indiamart
One should add on further base breakouts if the 1st one is missed.
Few of the current bull run are:
#Affle #Indiamart
Now coming to few of my current live trades.
Listing at premium ~> Correction of 20-30% ~> Breakout above listing day high on volumes.
Listing at premium ~> Correction of 20-30% ~> Breakout above listing day high on volumes.
An ideal IPO setup in the making!
Do like and share if you found it valuable,all inputs are welcome:)
There are myriad of other case studies which I’ll update live instead of more retrospective examples.
Special thanks to @anand_luhar sir 🙏🏻
Happy Diwali 🪔😄
There are myriad of other case studies which I’ll update live instead of more retrospective examples.
Special thanks to @anand_luhar sir 🙏🏻
Happy Diwali 🪔😄
#Clean: If missed IPO base breakout,giving low risk entry near 10WMA.
3WTC + WIB with amazing volume contraction.
3WTC + WIB with amazing volume contraction.
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