The Fed's 75 basis point rate cut set the markets off to a flying start mirroring markets across the globe. But with investors booking profit ahead of a long weekend, some of the gains were erased. Nifty closed at 4,574 up 41 points, while the Sensex shut shop at 14,995 up 161 points.
Technical Analyst Ashwani Gujral is negative on Gujarat NRE Coke and IFCI.
“Each time I see the gap up, the trade I have is to go short. This market will not have a V-shaped recovery and cross 5,000 in a hurry. You get good liquidity only when you have these gap-ups. So, clearly we are not going to immediately see new lows. But the market is just pausing. The levels of the Nifty would be between 4,450 to about 4,800. We could do some up and down out here, but the trend clearly remains down,” said Gujral.
Here’s how Ashwani Gujral views the stocks on board:
On Gujarat NRE Coke:
Gujarat NRE Coke has broken down Rs 155 and is back in the range from where it really broke out. It is still stronger than a lot of other midcap stocks. Around Rs 110-115 is now the support and Rs 155 becomes another stiff kind of resistance.
On IFCI:
The story is really over now. You could have support at around Rs 32 or Rs 33. It really needs to get back above Rs 50 before it has any kind of sustainable upmove. Most of the financials are going to get a pasting because financials seem to be leading this decline. So, its unlikely that it will be the financial group leading out of this decline. These stocks need to form the bases before they can move higher.
Source: Moneycontrol.com
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