Is Investing in TVS Electronics at Rs.105 a Good Move? An In-Depth Analysis

Dear fellow investors,
The question of whether to invest in TVS Electronics at a price point of Rs.105 has been on the minds of many. After analyzing the technical indicators and recent market trends, here is my take on whether this investment represents a sound decision or not.

Technical Analysis: Key Findings

The analysis of recent technicals reveals a few critical insights:

Resistance at Rs.105

At Rs.105, there has been a significant volume generated on June 22, 2020, indicating a strong selling pressure. This makes Rs.105 a resistance level for the stock. Any attempt to reclaim this level will face considerable selling pressure, which is not a favorable environment for a potential investment.

Resistance and Adjustments

Before Rs.105, another significant volume was generated at Rs.111.40, suggesting that the stock is correcting further. The indicator also shows a selling pressure at Rs.110.70, confirming the significance of Rs.111.40 as a major resistance level.

SUPPORT LEVELAT RS.95.70

Rs.95.70 serves as a golden ratio and is currently the major support level for TVS Electronics. If the stock price breaks this level, it could potentially drop to Rs.74 or around that level. However, the analysis suggests that this level should not be broken if the current market conditions persist.

Key Conditions for Profit

To go up, the stock must cross Rs.111.40, constituting a major resistance and a selling pressure area. To prevent further downward movement, the stock should remain above Rs.95.70, a golden ratio and major support level. Meeting both these conditions will be crucial for any potential profits.

Caution and Cautionary Actions

Please be aware that the above analysis is not static. Any major changes in stock volume, price, or news could negate the current assessment. Therefore, it is important to stay updated and be prepared to reassess your investment strategy based on any new information.

Final Thoughts

Investing in TVS Electronics at Rs.105 is a high-risk decision, especially given the recent peak at this price. Historically, one should have waited for sufficient correction in the stock price before making an investment. However, based on current indicators, the stock price may continue to fall, requiring investors to wait for a downward correction to be completed before considering buying back at or above your original price. This timeline could take several months, indicating that caution is paramount.

It is essential to adhere to a robust risk management strategy and only invest what you can afford to lose. Always consult with an experienced financial advisor to ensure that your investment decisions align with your financial goals and risk tolerance.

Please be fully informed regarding the risks and costs associated with trading or investing in the financial markets. The information provided in this analysis is intended for educational purposes only and should not be considered as investment advice.