Avoid going long on steel stocks: Ashuu Kakkarr, Technical Analyst

Ashuu Kakkarr, Technical Analyst, Market Strategist, www.ashuukakkarr.com, in a chat with ET Now talks about steel stocks.

After the uptick that we have seen already, would you go into any of the large-cap or the mid-cap steel stocks at the current levels?

Clearly at this point of time, technically the risk-reward is not favourably going long. Probably Tisco has a resistance at 583 and 595 and 605. Probably from a position trading point of view, I would look to start accumulating shorts and Tisco may be if it comes closer to 595-605 zone. At this point of time, I would not do anything, just wait and watch.

Sterlite for example can move up to about 172-173, probably the 20-day moving average is over there. Above that, it can move up, may be to about 180 or so. But that said, I do not see much of an upside.

Jindal Steel and Power, for example, are trading closer to 711-715. Closer to these levels or even say up till 730-740 zone, I would look to accumulate shorts on Jindal Steel and Power with a target of about 640-615 on a positional basis.

JVSL is trading closer to 1225-1230 zone, may be there is an upside of till about 1246, may be to 1250. Closer to 1250 or so, I would like to build up short positions over there again, definitely with a slightly steeper stop loss. May be 1275 could be my stop loss.