Not a good time to invest for long term at current levels: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com in a chat with ET Now gives his views on the markets for the coming week.

ET Now: After the scale up to 5600 this week, what is the ticker telling you for Tuesday morning?

Deepak Mohoni: First of all, this is a global rally and not India specific. Since our market is more volatile, we have high percentage gains compared to other markets. Indian markets fell a lot more and bounce back a lot more as well. As long as the global rally remains intact, we keep going up. The rally has also been fuelled by FIIs who have been buying since December end.

At the moment, the rally still looks strong globally. Europe is up even as we speak. There is a disadvantage of not being open on Monday. If there is a huge rally tonight, we may miss out, incase there is a reversal on Monday. That is the only glitch. The reason I talk about a reversal is because this rally is eight-nine weeks old. Even a roaring bull market does get mature sometime.


ET Now: Your thoughts on Tata Motors: For someone who is holding the counter as well as someone who wants to get in?

Deepak Mohoni: This rally is already about 9-10 weeks old, so not a good time to invest long term at these levels. Wait for a market correction. The kind of correction will be a one or two week long intermediate downtrend. That would be the best time to get in, because things may not fall very much after that.

Tata Motors would certainly be one of the stocks to buy at that stage. It has been one of the leaders of the bull market rally and should continue to do reasonably well later as well. If somebody is holding Tata Motors, continue holding it. In fact, most stocks which are on hold, even the ones with poor fundamentals, are being rewarded by these conditions.


ET Now: What about midcap real estate stocks like HDIL, Puravankara, Orbit? Also, some of the power names like GVK Power & Lanco Infra. If you had these stocks in your portfolio would you book profits or still stay long?

Deepak Mohoni: I would not book profits in anything. There is much more upside left on the bull market because this is just the first leg of the rally.

I am not investing into the long term right now. The best time to get in is after a correction and this rally is already quite old. Right now, any kind of a stock in a portfolio should be on 'hold'.

Short term traders wanting to make a quick buck over two-three days should also hold & use a trailing stop. Even the power move is now two-three days hold so perhaps the power stocks not going forward on Tuesday.

ET Now: Your stock specific recommendations?

Deepak Mohoni: I have short term trades. For long term investing just wait for an intermediate downtrend which will come sooner or later. The short term trades are in Apollo Tyres, Siemens and Havells India.

These stocks did not dip much towards the last one hour on Friday when there was quite a bit of a sell off. So, one can infer that there is a residual demand. If Tuesday is a good start for the markets, these should be doing pretty well.