Buy JP Associates on dip: Mitesh Thacker
I would probably wait for a dip. The trend is still there in place. We still might get an opening gap tomorrow also, which is something, which I cannot forecast but even then I would probably now wait for a correction.
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| Updated: Mitesh Thacker, Technical Analyst, miteshthacker.com, in a chat with ET Now, gives his view on JP Associates
The kind of move that we are seeing in a JP Associates as also the rest of the infrastructure pack, IVRCL up 14%, Lanco, NCC up 8%, 5% respectively. Do you think this can spill over in the next couple of days, at least in tomorrow’s session?
Maybe, it is difficult to say because today we are seeing a very strong price action coupled with the fact that the volumes are also good, so yes, some kind of spill over effect might take place but from a trading point of view, I am not very sure whether this is the best time to enter JP Associates or an IVRCL Infra or even a Lanco Infratech for that matter. JP Associates we had very strong buy signals at about Rs 60-63, that was a very good level, the trend was established on the upside and the risk-reward of entering into a new position was very favourable. Today I would probably wait for a dip. The trend is still there in place. We still might get an opening gap tomorrow also, which is something, which I cannot forecast but even then I would probably now wait for a correction, see how these stocks react once they give a pullback to their short term or even intraday moving averages. If they are holding out nicely, probably buy on that dip, so the entry point is not correct but the stocks are clearly enjoying a good uptrend.
The kind of move that we are seeing in a JP Associates as also the rest of the infrastructure pack, IVRCL up 14%, Lanco, NCC up 8%, 5% respectively. Do you think this can spill over in the next couple of days, at least in tomorrow’s session?
Maybe, it is difficult to say because today we are seeing a very strong price action coupled with the fact that the volumes are also good, so yes, some kind of spill over effect might take place but from a trading point of view, I am not very sure whether this is the best time to enter JP Associates or an IVRCL Infra or even a Lanco Infratech for that matter. JP Associates we had very strong buy signals at about Rs 60-63, that was a very good level, the trend was established on the upside and the risk-reward of entering into a new position was very favourable. Today I would probably wait for a dip. The trend is still there in place. We still might get an opening gap tomorrow also, which is something, which I cannot forecast but even then I would probably now wait for a correction, see how these stocks react once they give a pullback to their short term or even intraday moving averages. If they are holding out nicely, probably buy on that dip, so the entry point is not correct but the stocks are clearly enjoying a good uptrend.
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