TECHNOLOGY leads with an above 3% gains while FINANCIALS was direct opposite with a close to 4% fall. Most of the Sectors closed weak, exceptions being TECHNOLOFY & CONSUMER SERVICES. There is no sector which has any room left for bullishness at present. Hence, we need to close long positions and initiate shorts both on the NIFTY index as well as individual stocks.
Which are the stocks that have the highest probability of winning on the short side having a good risk/reward? As for the sectors that favor good shorts are HEALTHCARE and BASIC MATERIALS.
ASIANPAINTS & SESAGOA looks the most attractive. HINDALCO is in short from last week. Among the HEALTHCARE sector, DRREDDY is in short from the past week.
The performance of stocks recommended by us too were dismal along with the broad markets. Both BHARTI & NFL were exited below previous day lows. BHARTI closed with a profit of Rs. 7.30 per share while NFL closed with a loss of 1.85 points. SUNDARAM FASTENERS has given an exit signal on Friday, close longs below 53.10. This stock fell short of target by a tick and is a great lesson of a good position turning weak, showing us the importance of targets when the broad market does not have good strength.
The other stocks ABGSHIP and ADORWELD though have closed weak are holding on to their stops.
There are many stocks which are very strong on the weekly charts even now. When there is a correction in the market, it is an opportunity to go long in these stocks. But, not in a falling market, wait for an uptick and get in, there can good rewards in the waiting.
APOLLOHOSPITAL, APOLLOTYRE, CADILA, CASTROL, TITAN,ULTRATECHCEM etc are some of the stocks which are among the list of strong stocks.
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