Dewan Housing is good as long as bull market lasts: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com

Have you taken a look at the charts of Dewan Housing?

Yes, I was watching this. It is quite a good performer in this sector in particular because it is almost back to its life time high, that's about Rs. 250 odd. It is not too far below that whereas if you look at the other stocks, they are at least still 20-30% or even more below their lifetime peak, so that is a good long-term indication about the stock.

Then within this bull market, of course it is climbing to a new bull market high as well, so it is in a pretty good uptrend at the moment. It looks quite stable but if the question comes of whether to hold it in a portfolio, I would say that as long as the bull market lasts, the stock is good.

In that recent bear market, it came down from Rs. 250 to Rs. 40 or less than Rs. 40. We are not likely to see such bad bear markets for a while but it is at least going to sink a lot more than other stocks would tend do, so that's the risk with all stocks in this sector really.