Should You Hold or Exit 500 Happiest Minds Shares?

Should You Hold or Exit 500 Happiest Minds Shares?

If you are considering whether or not to hold onto the 500 Happiest Minds (HMI) shares you currently own at a price of 345, there are several factors to take into account. As of now, you should consider a strategic approach that balances long-term investment and short-term profits. Below, we will explore the benefits of holding versus exiting, provide advice based on current chart analysis and future expectations, and offer a case study of successful short-term strategies.

Long-Term vs. Short-Term Investment

For those who believe in long-term investing, holding the shares until a desired price point or significant market changes might be the best strategy. However, if you have access to cash and are looking to secure some capital gains, it may be wise to consider exiting at a strategic point. In either case, it's crucial to have a clear exit strategy in place, ensuring you lock in any profits before they are lost due to market volatility.

Current Chart Analysis

The recent candlestick pattern of Happiest Minds shares on a daily chart shows a potentially bullish trend, despite the two recent bearish candles. This indicates that buyers are driving the price higher, suggesting that the share price is likely to continue in an upward trajectory in the near future. This is particularly relevant given the upcoming administration of Joe Biden, who is expected to introduce policies that could positively impact the IT sector, including a more liberal approach to immigration.

Expert Recommendation

My recommendation is to hold the investment amount of 14,940. The listing was at a premium, and the company is managed well. At the current price, the value of the shares is 29,340. Holding onto these shares for the next few years and reinvesting when the price is low could lead to significant gains. The stock has the potential to outperform, becoming a long-term player in the market.

Case Study: Effective Intraday Strategies

While long-term investing offers stability, there are also successful short-term strategies that can generate wealth. One such strategy involves intraday trading. For instance, if you did not get an allotment but noticed that the stock listed at a high price, you could focus on intraday trading. By purchasing shares on a daily basis and selling at a higher price, you can realize small but consistent gains. This approach, as demonstrated by an individual who earned 46,000 Rupees with the HMI shares, can be a valuable tool in an investor's toolkit.

For those who have held some HMI shares, a strategic approach has proven effective. By averaging the purchase price around 324 Rupees, maintaining the shares over the long term can lead to significant returns. However, it is important to remember that any investment carries risks, and the assertion that 'in the long term we will all be dead' highlights the transient nature of life and investments.

In the Indian stock market, where shares can move significantly in a day, intraday trading can be an effective way to maximize gains, especially if managed properly. With an initial capital of about 50,000 Rupees, one can use intraday strategies to generate consistent and substantial returns over time.

Given these factors, the decision on whether to hold or exit the Happiest Minds shares should be based on a balanced approach that takes into account both long-term growth and short-term gains. By carefully considering the current market trends and potential future developments, investors can make informed decisions that align with their financial goals.