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Tuesday, November 20, 2012

Short term Bottom on Zylog Systems!

We wrote about Zylog Systems few days back here, on how stock was crashing to Lower circuit on daily basis, on the back of possible Bear Cartel and Rumor mongering. Today, there is a possibility of short term bottom on this scrip, with huge volumes of trading getting reported and stock moving 4% up in intra-day trade. As market is still not closed for the day, we don't know if this is for real, but Zylog is worth a close watch from today onwards for a possible short term revival.

Please see the volumes reported in this scrip:





About 160 Lakh shares were traded intra-day today, and day is not over yet! This is almost equal to the total numbers of shares outstanding of the firm, and hence points to huge intra-day closure of short positions!

What do Retail investors do from here:

1. If you do not have holding in Zylog as of today: If you don't hold Zylog, this is still high risk period to get a fresh position. One needs to wait till scrip closes above its 50 day SMA to create a fresh position. Fundamentals may be good at this price, so few days of wait will not change much in terms of price.

2. If you are reeling under huge losses: As Zylog has lost 80% of its market value, you may want to bring down your average holding price to Rs 100 or so. Wait for 1 or 2 days and if upward momentum continues, average your holding price to Rs 100 or so. That should be a good price for you to exit and come out of your losses.

3. If you are a high risk investor: What are you waiting for. Take a dip!

2 comments:

  1. Dear Naren

    Good article on Zylog as how the bear cartels exploit the stock pricing.

    What basically is the outcomes of this situation's in a long term over the stock pricing? Even though fundamentals are intact, will company looses the PE considerable over the period of time? or Just its a short term game plan, long term outlooks remains as before?

    Pls share your thoughts

    Thanks
    Venkat

    ReplyDelete
  2. Hi Naren....

    Zylog is again drifting downwards towards 65....is it wise to buy now....

    Fundamentally is it good ? Buyable ? or is it going down with point of no return ??

    ReplyDelete

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