Go short on high beta stocks like DLF and Hindalco: Ashwani Gujral

In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, (Technical Check) shares his views on various stocks.

ET Now: What is your call on high beta stocks?

Ashwani Gujral: If one did not get in on Monday or Tuesday, it is a bit late to get into high beta stocks. They have already appreciated about 15% odd from the lows. Probably, at higher levels one needs to wait to get back into short positions in these stocks. DLF around 209-210 has historically been a resistance. One more good day and then you could go short. Hindalco at 160-165 historically has been resistance. So, another good day here and again these stocks will become worth shorting.

For the next foreseeable future we should expect a retest of 4700, some kind of range before we breakout or breakdown. For high beta one needs to define the boundaries. If we get closer to 5100, we can only short at that point and buy around 4700. However, the bulk of the high beta rally could be behind us.