GMR is in long-term downtrend: Deepak Mohoni
GMR is in a very clear cut long-term downtrend.
By ET Bureau |
On the charts a GMR Infra or a Sesa Goa?
Deepak Mohoni: GMR is in a very clear cut long-term downtrend. It has been sinking to multimonth lows and its well below the 200-day moving average and when it goes sort of in a sideways range from time to time it should not be mistaken for accumulation because this is not beginning of a bull market. If it were a beginning for bull market it would be a very different picture. Sesa Goa has actually been making fairly good moves in the last week or so but this move has started after it sank to a two-three month low so again its not necessarily going to make a new bull market high that's it still considerably below it. The bull market high so far was about 425-430 somewhere there so we are still some distance below that. Stocks, only those stocks which are making clear bull market highs or at least at the top of the range and have a reasonably good bear market history that means they did not fall much in the 2008-2009 bear market.
Bajaj Auto aside, which stocks will you prefer?
Deepak Mohoni: Some of the pharmas not Ranbaxy or an Orchid or a Strides Arcolab or an Aurobindo though all those stocks tend to fall quite a lot but you take a Lupin that has been quite stable and say if Reddy's does not do very much but does not fall also. Those are a lot better Sun, Lupin, Divis Labs again not performing very much but reasonably stable in bear markets those are good defensives. I think many of the multinational stocks they tend to holdout quite well again pharma has few to offer. Then you have FMCGs, Lever's tends to holdout but Lever's has fallen to a five-six month low so I am not so sure about it this time around.
The expert is Director, trendwatchindia.com
Deepak Mohoni: GMR is in a very clear cut long-term downtrend. It has been sinking to multimonth lows and its well below the 200-day moving average and when it goes sort of in a sideways range from time to time it should not be mistaken for accumulation because this is not beginning of a bull market. If it were a beginning for bull market it would be a very different picture. Sesa Goa has actually been making fairly good moves in the last week or so but this move has started after it sank to a two-three month low so again its not necessarily going to make a new bull market high that's it still considerably below it. The bull market high so far was about 425-430 somewhere there so we are still some distance below that. Stocks, only those stocks which are making clear bull market highs or at least at the top of the range and have a reasonably good bear market history that means they did not fall much in the 2008-2009 bear market.
Bajaj Auto aside, which stocks will you prefer?
Deepak Mohoni: Some of the pharmas not Ranbaxy or an Orchid or a Strides Arcolab or an Aurobindo though all those stocks tend to fall quite a lot but you take a Lupin that has been quite stable and say if Reddy's does not do very much but does not fall also. Those are a lot better Sun, Lupin, Divis Labs again not performing very much but reasonably stable in bear markets those are good defensives. I think many of the multinational stocks they tend to holdout quite well again pharma has few to offer. Then you have FMCGs, Lever's tends to holdout but Lever's has fallen to a five-six month low so I am not so sure about it this time around.
The expert is Director, trendwatchindia.com
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