Avoid getting into HCL Infosystems: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com in an interview with ET Now talks about HCL Infosystems.

What do the charts suggest for an MTNL or an HCL Info?

HCL Info was running sideways for about a month in a very narrow range. It is completely broken down from there and is now straightaway to its lowest price of the year. Now what happens here is you could when you have this sort of a breakdown there is sometimes a chance that it might bounce back and at least recover some good percentage of that lost ground but from seeing what has happened to stocks after that it is probably better to take that 8% hit.

Switch to some other stock so that you have the market exposure but not in this particular stock. Once it shows some signs of bottoming out, rallying again like. The best case scenario is something like an LIC Housing Finance that got hit pretty badly but after three-four months staged a pretty good recovery. So I think you have got to wait for that recovery to happen.