Deepak Mohoni of Trendwatchindia.com feels the vicious intra day volatility is actually quite favorable for intra day traders because the trend establishes itself at about 10:30 am and persists during the day making big moves. “The problem is for swing traders who want to carry possessions overnight. You do get gaps going the other way if the market finishes strong and opens with a downward gap or finishes weak and opens with an upward gap. So it’s a difficult market for swing traders, but quite good for intra day traders,” he added.
Here’s how Mohoni views the stocks on board:
Unitech
It’s usually volatile and a component of the Nifty, so it does get back into demand whenever there is a good market rally. The level to look for would be around Rs 450, that’s where it had reached after the January 22 crash and then declined again and it’s trying to come back there. A move past that could mean a more sustainable up trend than what we are seeing now.
Reliance Communication, RNRL, Reliance Capital and Reliance Energy
Reliance Communication has been a little stable, it’s not making vicious moves in either direction. So, possessions would be a little more secure here and you wouldn’t find some abrupt move in the opposite direction. RNRL has always been volatile so that poses the biggest risk in either direction, Reliance Capital would be somewhere in between, that’s how they stand at the moment. Reliance Energy is also again a volatile stock which favors the upside when there is a good rally.
Hindalco
The metal pack has participated very well in the newest rally. Hindalco has been one of those beaten down stocks which once given a chance, starts making a few moves which lasts a while. So this has come back to what you might say the Sensex equivalent to 19,000, that’s the highest level the stock had reached after the January 22 crash. That’s quite a good benchmark for stocks.
This is one of the few stocks that has actually come back there, so this may look fairly good in the medium term at least.
Disclosuers: It is safe to assume that my clients & I may have an investment interest in the stocks/sectors discussed.
Source: Moneycontrol.com
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