Stocks that you should consider keeping in your portfolio

I keep receiving repeated questions on which stocks to hold and which ones to sell. To answer that question is very difficult as every stock goes through an upward and downward movement

for e.g. if you take State Bank of India stock in the month of May 2012 it was around 1802 level and then as part of Elliot 5 wave impulsive pattern reached a maximum of 2244 and that is close to 25% increase within 20 trading sessions (not including 4 week ends which would have gone by)

However if you look at Aug 14th chart it has reached a low of 1858 and I had mentioned in my post on SBI that it has immediate support around 1856 level http://analyzestockmarket.blogspot.in/2012/08/state-bank-of-india-sbi-aug-13th-to-aug.html. Now the question is, whether to invest in stocks like SBI and then forget it for a year or two? My answer to that question is not easy and requires understanding on your investment risk level, capability to reinvest and keep adding your portfolio, some tolerance to losses, time horizon of investment period...so on and so forth

1. If you are a long term investor looking to keep stocks for next 2 to 4 years time frame then it may be worthwhile keeping it in your portfolio as it may reach from current levels to as high a even 3000+

2. If you are a short term trader, focusing on 6 month to 1 year view then you have to be abreast with the developments and ensure that you keep watching the money that you have invested already

3. There is another set of crowd which is too short term focused and that is between 1 to 3 months time frame, now this group will invariably lose a lot of money if some technical/fundamental analysis is not done and more importantly having that discipline to be patient and trade along with the market

So if market is going to fluctuate so much and every quarter the stock prices fluctuate and go exactly to the same level or much below then which ones to keep in your portfolio?

Answer to that question is find stocks that have not re-visited its current levels over a period of time. It could be in any industry and can also be a high beta stock or defensive in classification

I will spend some time and give you some of the stocks which follow this trend that I mentioned just now and it may be worth considering them when compared to others

Note: Stock market is a high risk asset, so anything can happen in the future to a stock but I'm only giving you a view of which ones you can consider keeping in your portfolio either short or long term basis looking at past performance on charts and more of it is purely a technical advice

Note : There may be may be many hidden stocks which are worth considering however I'm just giving a gist of it for your reference

Pharmaceuticals

1. Sun Pharmaceuticals (sunpharma)

2. Lupin - for last close to 2 years the stock has not retraced its lows

3. Glenmark

4. Cipla (last 1 year has been trending up)

5. Aurobindo Pharma (not so great, but may consider)

6. Cadila Healthcare (last 8 months uptrend and steady)

Cigarettes

1. ITC (uptrend movement for last 2 years)

IT

1. Mindtree (uptrend for last 1 year)

2. NIIT Technologies (NIITTECH) - for last 3 years

3. Polaris - Over the last 3 years uptrend

4. KPIT

and there are many many more, I request viewers to add to this list and place it in the comments section so that people who come to view it on a daily basis can also get benefited like you and I