Expect no major traction in the ADAG pack: Rajat Bose

In a chat with ET Now, Rajat Bose, rajatkbose.com shares his views about the ADAG stocks.

ET Now: What is the call on ADAG pack. Are you seeing strong traction building up on the charts now?

Rajat Bose: It is too early to say because even yesterday Reliance Communications was at 4 days of gains but then what you notice is that volumes are not really picking up. When you see large volume base trading days are recorded on the end of the charts that suggest that there is really some traction going on.

On the contrary it is still maintaining that lower peak, lower trough kind of formation and it has not been able to go beyond its 34-day moving average. So, I would be a little wary about saying that we are into some kind of real overall for these stocks that ADAG pack.

Look at Reliance Capital, even the same story is repeated there. The volumes are not that great. It is on an average. On Reliance Communications the volumes are dwindling but in this case the volumes are just about average. So here, I would lke to say that the last 5-day volume chart as well as the trading chart does not show that there is major traction going to be in these ADAG pack.