Ruchi Soya Industries Ltd ( Ruchisoya ) - Patanjali Effect
Ruchi Soya Industries Ltd stock ( ticker Ruchisoya ) is another addition to our 'losers becoming winner' series. Earlier we have already discussed two more stocks and their possible good upside potential, namely - Unitech and Amteck Auto. Since we have already mentioned the common rationale behind these trades in previous trade posts ( please check the link for Unitech and Ametk Auto), we are not going to repeat that.
How much good a deal with Patanjali can bring to Ruchi Soya's stock is still needs to be discovered but one needs to understand that market moves on perception rather than performance. So when numbers will be released during the quarterly results later after few months, it may be too late to invest ! Funny thing is, this stock came to our attention because of a fake news of a deal with Patanjali couple of weeks ago ! But then 24 / 25 was a good support on a pull back and we took a trade just for few points. As soon as we entered into the trade, again news ( this time real ) broke out about the deal and gave the stock a good bounce. Now since we have enough profit buffer until below 20, we will hold the position and see what happens next.
NIFTY is also working according to the script.
How much good a deal with Patanjali can bring to Ruchi Soya's stock is still needs to be discovered but one needs to understand that market moves on perception rather than performance. So when numbers will be released during the quarterly results later after few months, it may be too late to invest ! Funny thing is, this stock came to our attention because of a fake news of a deal with Patanjali couple of weeks ago ! But then 24 / 25 was a good support on a pull back and we took a trade just for few points. As soon as we entered into the trade, again news ( this time real ) broke out about the deal and gave the stock a good bounce. Now since we have enough profit buffer until below 20, we will hold the position and see what happens next.
NIFTY is also working according to the script.
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