Wait and watch for Patel Engineering: Deepak Mohoni

ET Now spoke to Deepak Mohoni, Director, trendwatchindia.com, about infra stocks.

What is the call on Patel Engineering and other infra stocks?

Patel is turning out to be an extremely volatile stock. It has made some pretty large moves in both directions but the current volatility, the daily or weekly volatility has been the highest it has ever been at and this is following an extremely sharp sell off. It came down from 400 to something like Rs 135 in 4 or 5 months flat. So that was a pretty heavy sell off and since then we have had a pretty strong bound. So right now it is in a state where it is going to be making very large moves in either direction till it settles down and even in the process of slowing down, the stock will probably continue to make large moves compared to the other stocks. That is a situation today. So when you find today after a large move it is down 3%, it is certainly not time to go bargain hunting because it could well end up 6-7% down given this volatility. When next to trade it on the upside would be when it starts going up and today would not really be the day because the market is looking like it is correcting, short term correction no doubt but during this correction, you do not want to buy volatile stocks because they will go down quickly.