Trade infrastructure stocks on the short side: Mitesh Thacker

In a chat with ET Now, Mitesh Thacker, www.miteshthacker.com, talks about sugar and mid cap stocks.

Just a word on some of the sectors that were down and out in yesterday’s trade and wondering what kind of trades can one take in the liquid names one the sugar space and two some of the midcap infrastructure boys the likes of IVRCL, Nagarjuna construction, GVK Power?

To begin with, on the sugar side they have broken supports on intraday charts. We have got lot of sell signals which basically hourly, two hourly charts indicating that the correction would probably continue. So I would probably look at shorting Balrampur Chini, Bajaj Hindusthan over here. Renuka also has been weak, in fact, it was a sell recommendation by us to our clients yesterday we have just book the profits on that.

Coming to the infrastructure pack I think these stocks have been actually beaten down too much and they are slightly oversold. They have been in a downtrend and while there is no signal of a downtrend reversal what might happen is that you might see some kind of a temporary bottom being formed shortly purely because they are in a good oversold reading. So you might want to wait for some kind of a pullback over here before you want to short them. I would still be looking to trade on the short side purely because I believe that the trend still remains firmly down.