Strategy of Sector and Stock Specific view recommended in current market conditions
Posted on April 15th, 2008 in Personal Finance) by Motilal Oswal Securities Ltd |
The weekly close of the Sensex at 15,808 was seen in positive territory, as it was 464 points up in comparison with previous weekly close of 15,343. But the required level of 16,000 is still intact and needs to be breach in upward for intermediate trend reversal. The RSI and other technical indicators are suggesting a continuation of directionless movements. The level of 15,900 is attracti ng profit booking while the buying is seen in the zone of 15,500 - 15,300. In this scenario, sector and stock specific approach can help the traders. For instance, Oil & Gas, Power and Sugar sector stocks are expected to ou tperform the indices if up move is seen. The stocks like Bajaj Hindustan, Reliance Energy, Gail from the above pack can be accumulated in the short-term corrective trends. Finally, the levels to watch on closing basis are 16,000 (upward trend reversal) and 15,300 (downward breakout).