Buy Nagarjuna Construction & wait for a breakout: Technical Trends

Are you looking at a pattern over here because from a fund perspective a lot of funds are going big on mid tier and large cap engineering/construction stocks. Is that a trend that is getting reflected on the chart patterns as well where there is a small build up in volumes that can perhaps lead to these stocks rallying in the near term?

Sudarshan Sukhani: Well I am not sure if I can see a pattern in construction and engineering stocks. There is a pattern in capital goods some of them like BHEL are certainly building a base and making an attempt to move further or may be stock like Nagarjuna Construction but it is not overall it is not generalised which means most of the other stocks are relatively still low and languishing. So I would not call it a sector pattern.

But what are you observing on Nagarjuna Construction it is down about a percent and a half what is the potential there?

Sudarshan Sukhani: Nagarjuna is building a base and is trying to come out of it. So if you are an investor, if you are a position trader this is a good time to go and buy it and then wait patiently for that hopefully up move out the breakout to emerge.