Infra stocks to complete a pullback to their 10-20 day average: Mitesh Thacker
"Broadly the moment is in line with the markets. We are seeing profit booking happening over here. All the stocks had gone up by about 40%-50% in the last four to five weeks."
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| Updated: Mitesh Thacker, Technical Analyst, miteshthacker.com, in a chat with ET Now, gives his views on infra stock.
What is your call on infra space names like NCC?
Broadly the moment is in line with the markets. We are seeing profit booking happening over here. All the stocks had gone up by about 40%-50% in the last four to five weeks.
These stocks will complete a pullback to their 10-20 day average. For example, Lanco, which still has not corrected much, can probably go down to as low as about 13.85 to about Rs. 14 odd which is about 10%-15%. However, given the fact that the stock has nearly doubled from 8 levels to about 16 odd levels that is hardly a correction, these kinds of moves can happen over here.
The overall pattern is again very similar to the index. We have had a good rally. We have seen lot of indicators get into an overbought mode and then we are seeing in the half hourly and the hourly chart signals of weakness which means that we should look at some kind of profit booking happening over here.
What is your call on infra space names like NCC?
Broadly the moment is in line with the markets. We are seeing profit booking happening over here. All the stocks had gone up by about 40%-50% in the last four to five weeks.
These stocks will complete a pullback to their 10-20 day average. For example, Lanco, which still has not corrected much, can probably go down to as low as about 13.85 to about Rs. 14 odd which is about 10%-15%. However, given the fact that the stock has nearly doubled from 8 levels to about 16 odd levels that is hardly a correction, these kinds of moves can happen over here.
The overall pattern is again very similar to the index. We have had a good rally. We have seen lot of indicators get into an overbought mode and then we are seeing in the half hourly and the hourly chart signals of weakness which means that we should look at some kind of profit booking happening over here.
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