Telecom pack is highly risky, buy Bharti if at all: Deepak Mohoni
Deepak Mohoni says that Bharti Airtel is the only stock in the telecom pack that is looks a bit attractive.
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| ET Now talked to Deepak Mohoni, director, trendwatchindia.com, to get his views on the telecome pack.
We saw a bout of short covering for all stocks in the telecom pack. Bharti futures shed about 3 lakh shares and the stock was up marginally. Do you think the charts for the pack are showing strength?
At best, for a very short term. These stocks were among the first along with Suzlon to go into a long-term downtrend. They are still way below their 200 DMAs. This is again a sector which a lot of people think is bottoming out because it is in a range.
If this were the late stage of a bear market, I would have said it looks promising. But this is the late stages of a bull market or the early stages of a bear market, so I would say that these continue to be highly risky.
The only thing going for them right now is that they are not falling flat, but avoid the sector. A short-term play is now and then possible. If you want something defensive in the portfolio from telecom, then the only stock that could fill that bill is probably Bharti Airtel because it does not fall very much and may benefit from market rallies.
We saw a bout of short covering for all stocks in the telecom pack. Bharti futures shed about 3 lakh shares and the stock was up marginally. Do you think the charts for the pack are showing strength?
At best, for a very short term. These stocks were among the first along with Suzlon to go into a long-term downtrend. They are still way below their 200 DMAs. This is again a sector which a lot of people think is bottoming out because it is in a range.
If this were the late stage of a bear market, I would have said it looks promising. But this is the late stages of a bull market or the early stages of a bear market, so I would say that these continue to be highly risky.
The only thing going for them right now is that they are not falling flat, but avoid the sector. A short-term play is now and then possible. If you want something defensive in the portfolio from telecom, then the only stock that could fill that bill is probably Bharti Airtel because it does not fall very much and may benefit from market rallies.
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