I had been studying Bajaj Finance share price for a long time and was looking for an opportunity to buy. Finally, I took a deep breath and bought two shares after checking out the charts umpteen times. Then I felt proud and confident that a owned a blue chip company and would not have to envy my best friend who had bought it at 1800 a year months back.
A week went by and Bajaj Finance announced their results. ‘Not bad’, I thought happy that the company had shown growth.
Next morning, I was shocked to see a brokerage report reducing the price target by 700-800 Rs.
I scolded myself for taking a wrong decision for it was my hard earned money!
‘I need to get out of this’, my hand was on the sell button even before 9:15. It was no surprise, Bajaj Finance opened 4% gap down with many small investors like me panicking and getting out of the stock. I sold off at 4400, a loss of 400 per share.
To my dismay, that price was the lowest since then. Bajaj Finance closed higher than the previous day ! Today it trades 40% higher compared to that day.
The funny thing was another brokerage house had upgraded the stock and increased the price target !
So who do we believe?
Rings a bell? Why does it happen with small investors so many times. Don’t you think this happens too often ?
Create fear in the minds of the small investor. They sell in panic and the price moves up.
Another hilarious brokerage report increases price target of a stock from 552 to 558. The funniest part is the stock crosses the target price in minutes. All this makes me think
‘Is this a deliberate game’?
Moral – Follow your own rules when investing. Many times it helps to do the opposite of what these so called researchers say.
Recent Comments