Home > NIFTY Strategy > IT continues its downtrend, Cement looks bad

IT continues its downtrend, Cement looks bad

Saturday, January 12, 2008 Leave a comment Go to comments

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!

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Categories: NIFTY Strategy
  1. sagecapital
    Wednesday, January 16, 2008 at 6:51 pm

    Murtaza- So far the bet on Tata Steel is not working out. The stock is stuck in this 800-930 range. The stock is looking ugly in the short term.
    The problem lies with the “euphoria” surrounding the markets. I was actually alarmed by the “media coverage” Reliance Power IPO is getting!

  2. Murtaza
    Tuesday, January 15, 2008 at 9:49 pm

    @JK

    For me TISCO is still a value buy at these and lower levels. Since I am already holding more than 300,
    (I would prefer not to buy more)

    Let it synergise itself or rather Corus with itself and then see the difference, personally my target for TISCO in the next 1-2 yrs — 2K+.

    Also remember, India is on an infra spree, steel would be required in multiples of current supply qty. And steel not only required by infra, even power plants, various manufacturing plants or for that matter any plant/factory etc would be digesting so much steel – one cannot even imagine.

    Of course the trend may be different as of now, that only Sage will be able to tell.

    Invest wisely

    Murtaza

  3. JK
    Sunday, January 13, 2008 at 10:26 pm

    two stocks look good to me
    jp asso
    and tata steel?
    what does ur engine suggest uptrend or down trend in these stocks

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