Trading Strategies: Rate sensitive stocks

With the key economic data – IIP and inflation being announced today, will the Reserve Bank of India slash key rates in the upcoming policy review. How should you play the rate sensitive stocks now? Check out the trading strategies with Ranak Merchant, technical analyst - strategies, Sushil Financial Services


Smartinvestor : The markets have given up their morning gains after the key economic data (IIP and Inflation) was announced. What are the key trends that you are observing righ now? How high are the chances of the Nifty slipping from the current levels?

Ranak Merchant : Last week saw Indices make a smart comeback from just above their 200 Day EMA from a Double Bottom Support near 5850. Yesterday's high of 5971 not only marked a 61.80% Fibonacci Retracement cross over of the fall but also a test of a previous weekly double top. Pre Rbi Policy Benchmark indices are expected to consolidate around these levels. 5879 is an important support that needs to be held onto on closing basis.

Smartinvestor : Consumer durable counters are among the worst hit today. How do Blue Star, Titan Industries and Bajaj Electicals look on the charts?

Ranak Merchant : Of the three, Titan is the only one i track. We had a short call on Titan Inds and the our targets are about to be met near 237 levels. Upon breach of 237 on closing , with a trailing stop loss in place , lower levels of 225 can be eyed.

Smartinvestor : How should one play the interest rate sensitive pack right now?



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