What is your call on the auto pack, what do you do here wait for the bounce back to get over and then short or are there different trades that you would take in these?
The two wheeler segment still remains very weak and I would probably wait for the index to at least stabilise if not go down but even if it stops going up for the time being I would probably look at auto stocks to with a shorting kind of perspective.
May be Bajaj Auto I would like to wait it out purely because of the fact that it was extremely oversold on charts with the fall yesterday and while the 200 day average is at 1500 and that is where the stock is struggling to get past but there is a chance that 1530-1540 could be tested over here and I would like to wait for those levels because then there would be risk and reward equation in your favour is very very good.
Similarly Hero MotoCorp again is continues to remain weak. Today's morning highs 1860-1865 are excellent levels to go short, we did not go short obviously then purely because of the fact that I was still positive on markets and I was waiting it out but the stock has crack down. This one remains weak and this one will probably test 1730-1720 shortly.
No comments:
Post a Comment