IT continues its downtrend, Cement looks bad

Infosys continues to haunt investors by falling more every quarter. Interestingly, the stock had generated a short term sell on my systems last week only which told me that the results were not going to be a major surprise!

So should one buy Infosys now? As a trend trader, I can only go short on the stock rather than trying to pick bottom for the stock.

1535-1540 is some level where Infosys might try to bottom out. Below that expect sub 1500 levels on your favourite IT stock.

Cement is another sector which is looking bad. ACC, Grasim,India Cements etc. – all look set for lower levels in the short term.

Auto and pharma continue to be laggards and is not showing enough promise.

Capital good space ,though in an uptrend has lost short term momentum. With o many funds launched with “infrastructure” theme, this was more or less expected!

Banking is the only sector which is showing renewed momentum and might move up steadily. The same is true for the brokerage and financials space.

Looking at the markets, my sense is that slowly this might evolve into a “stock specific” market rather than sector specific. The “low hanging fruit” in the markets might be gone. So lets be ready to work hard for our returns!