Stay out of Punj Lloyd: Deepak Mohoni, trendwatchindia.com

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about L&T and Punj Lloyd.

Can L&T sustain the momentum? What has happened with Punj Lloyd, what would you do with it?

Punj Lloyd has got a fair amount of long-term weakness whereas the L&T move looks like it at least may have escaped from this intermediate downtrend. The move is fairly exceptional in L&T. So if one had to pick between these two, it would certainly be L&T.

Punj Lloyd I would watch with a little bit of caution because it has made these 2-3% gains every now and then but then every time the market declines, it goes and makes a lower bottom. So I would stay out of Punj Lloyd.

Would you short a Punj Lloyd at 142.50 after the 3% upmove today?

No, I would not go short while it is rising. Let it start falling, let the markets abroad start falling, that would be the time to go short. This would be a little bit countertrend even though the trend I referred to is one that could last a few hours but that could be enough to stop one out.