Query: I hold ICICIBANK shares, I want to sell,when should I SELL?

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Gentlemen,
Often I hear people saying things like

I bought icicibank shares at 1350 rupees a share.Now the price is at 1150.i want to sell but I cannt.What should I do?
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Let me answer this question in detail.

1.The person bought it at a relatively high price.
How can I say this?

see the chart below
http://finance.yahoo.com/q/bc?s=ICICIBANK.NS&t=3m&l=on&z=l&q=c&c=

The price was moving the zone 975 to 1350(trading range) in the past 3 months.
Our friend chose to buy the stock at top of the trading range at 1350.
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2.Now he has two options.
First thing sell at buying price
second thing DO SOMETHING ELSE AND GET PROFIT ON HIS INVESTMENT
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Either
HE CAN wait for price to reach top of trading range at 1350 and sell it at his buying price of 1350, and get out with loss of brokerage. If his broker is ICICIDIRECT, then he ends up paying brokerage of 27 rupees per share for buying plus selling. If he bought and sold 100 shares his loss would run into 2700 rupees.

This option is not obviously wise thing to do.

Second option.
Since you came to my blog learn something good here.
1. First check if your stock is a good one-means not a stock that goes down to 5 rupees level from 1100?
2.Once you checked previous chart, found your stock is a good one and it trades in a range and confirmed it does not go below a range, then note the support and resistance levels.

nOw my friend wakes up and asks
what is support?

SUPPORT SIMPLY THE LOWEST PRICE AFTER HITTING WHICH PRICE OBNLY MOVES UP,NEVER DOWNWARDS.

3.ONCE YOU MADE THE BUYING AT HIGHEST PRICE,YOU HAVE NO RIGHT TO RELAX BECAUSE YOUR FUNDS ARE STAKE.

sO EVERY TIME PRICE HITS THE LOWER LEVEL, AT SUPPORT BUY SOME SHARES depending on how much you can spare.
Now calculate your average buying price.
you bought 100 shares at 1350, you bought 30 shares at 980, your average buy price is now 1265.60(excludes brokerage) for 130 shares.

Now if the price goes to 1350, you can sell all 130 shares at 1350, make profit of 11050/-.

That is it,
if you can more money, buy more shares at support zone and average down your buying price and exit loss making price zone.

Suppose you bought 100 shares at 980 instead of 30 shares then your buying price goes to 1165. Your profit by 37000 rupees when sold at 1350(why 1350? because a good stock always goes back up to top of its trading range)
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LESSON

RULE NO-1 BUY HIGH QUALITY STOCKS
RULE NO-2 NEVER SELL FOR LOSS, AND NEVER HURRY
RULE NO-3 AVERAGE DOWN YOUR BUYING PRICE(APPLIES ONLY TO GOOD STOCKS)
RULE NO-4 ALWAYS BUY AT SUPPORT LEVEL
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ramesh151@gmail.com
Happy trading!!!