Bullish on Uflex in short-term: Deepak Mohoni

ET Now spoke to Deepak Mohoni, Director, trendwatchindia, on his views Uflex Ltd.

What about Uflex?

For Uflex, it's momentum play once again, good move in the last, anytime frame really, 1 month, 3 month, 1 year, it has been on a roll but this not really a very much of a long term pick because it did fall 80-85% in the last bear market.

It has not got that resilience to hold out when the markets are going down. So this is very much short term. The market seems to be in a pretty decent uptrend. So the short term may even extend to a couple of weeks, 3 weeks if all goes well.

So between a Uflex and a Jindal Poly, do you think a trailing stop loss works on stocks like these? The reason I am specifically asking is these stocks are usually not institutional holdings, the strength of the holding is not too good and sometimes when they collapse, it is difficult to trigger a stop loss. But would a trailing stop loss work either in this or in Jindal Poly?

Trailing stops are really the best way to go while trading these stocks with momentum. The problem with targets is they are either not reached and they are reached and then you miss out on a very large part of the move. So trailing stop is absolutely the best way to go. It is harder work than having a target but it is worth the effort.