Resurgere Mines and Minerals

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Originally posted by subu76

Ya...hit bhai...what's the dope with resurgere? Atleast tell us somethingCorrection:I understand you are busy.Please let us know when you have the spare time. 

HI Subu,

Regarding Resurgere Mines and Minerals, it is a poor man's sesa goa with estimated reserves of 74.82 Million tonnes of Iron Ore and 4.92 Million tonnes of bauxite. Their iron ore reserves are high quality iron ore and consists of various types of iron ore. I don't know too much fundamentals except that iron ore prices are firming up again after hitting rock bottom.

As I said, the stock made a high of 740 immediately after listing and then started coming down and made a low of 36 on 9 march and then raced to 140 on 8 may and then has been consolidating above the 61.8 % retracement level which is at 76.  

Also the 11 % level of 740 comes at 81 and whether other people believe it or not, I do track it in a lot of stocks and find it very useful especially in stocks with some amount of fundamentals. Case in point being stocks earlier mentioned like kirloskar electric(which today was at 75 from its level of 43) and gulf oil(which is 67 from its level of around 54) and recently one i missed which is helios and matheson.

During its corrective phase the stock faced stiff resistance between 75-78 thrice and now that same band is offering support to the stock. This is often described as change of polarity principle wherein an earlier resistance becomes support once that resistance band is convincingly crossed. That seems to be the case now with Resurgere wherein it is consistently taking support in the above zone.

I have my stop loss at around 75 and have bought it at 11% level. Let us see how it pans out.  