Wait till signs of rally before selling infra: Technical Trends

There was lots happening outside the frontline indices yesterday, stocks like GMR Infrastructure, Tech Mahindra and Mahindra Satyam, what is the call on all these stocks now?

Sudarshan Sukhani: All 3 of them I would not be very upbeat. There is buying possible in the metals certainly in the banking sector and pharma but infra was more of a relief rally or more of a short covering condition. So I am not keen on either GMR Infra or the other 2 names that you refereed to.

So are all infra stocks more like a sell on every uptick?

Sudarshan Sukhani: They all are sell. The key here is that if the broad market keeps on drifting upward, then there is no reason to go and short sell in a market that is going up but that is not good enough reason to buy. You certainly wait for the first signs of this rally to end and they would become selling opportunities, that entire infra, real estate, construction pack.