MAPMYINDIA : A reversal pattern is forming
The stock is trading at high valuations and in a market scenario in which even the overall market is showing signs of weakness, there is high probability for stocks with high valuation to sell-off.
The financial statements is not that attractive. And this adds upto the unfair valuation that the stock is trading now.
The FIIs have only a small percentage of holding in this stock and in the last 3 months they have decreased their holding by 2.59%. About 35.73% of the stock is held by retailers and other parties and a profit booking may easily lead to an aggressive panic selling in such scenarios.
So I will look for an entry only when the stock offers a fair valuation at the bottom of the expanding channel.
The financial statements is not that attractive. And this adds upto the unfair valuation that the stock is trading now.
The FIIs have only a small percentage of holding in this stock and in the last 3 months they have decreased their holding by 2.59%. About 35.73% of the stock is held by retailers and other parties and a profit booking may easily lead to an aggressive panic selling in such scenarios.
So I will look for an entry only when the stock offers a fair valuation at the bottom of the expanding channel.