Sell Bhushan Steel and Jindal Saw because they are weak: Hemen Kapadia

Hemen Kapadia, CEO, chartpundit.com in a chat with ET Now gives his take on Bhushan Steel and Jindal Saw.

You are not too bullish on the metals space, you are recommending a sell on Bhushan Steel and even Jindal Saw on your sell radar.

Yes, I am bearish on the market itself and if you look at Bhushan Steel, once again negative diversions of small distribution pattern happening, crossover sell on the weekly chart from the scholastic. In terms of the Jindal Saw also once again similar looking pattern. We formed a small rounding top which is a bearish pattern crossover sell. Sell on the MACD on the daily chart after reflecting negative diversion. So you have a plethora of technical reasons why they look weak from a near term point of view.

1633 is the target on Bhushan Steel. Is this the same reason for Jindal Saw as well?

Slightly different but yes, more or less in the sense, Bhushan Steel is looking weak because there is a distribution pattern which is the normal distribution pattern and if you look at Jindal Saw, it has made a rounding top which is also a distribution pattern but a very typical pattern where you have a slow and steady topping out pattern which is slightly roundish and then you have the indicator giving the sell. This normally happens when it gets exhausted and it has had a great run up and it is tiring a bit.