Check out the technical trends in select infrastructure stocks such as BHEL, IRB Infra, IL&FS Transport, Lanco Infra, GVK Power with Ranak Merchant, technical analyst-strategies, Sushil Finance:
SmartInvestor:Markets continue to be in an uptrend ahead of the BJP-led NDA forming the new government at the centre. The Nifty has retreated after topping 7,300 levels in early trades. What is your advice to traders on the benchmark index in the near term?
Ranak Merchant:The entire election saga unfolded with frenzy and markets have gained in style. With the recent runup benchmark indices have seen 14%+ upmove in a months time. With the event now behind us focus would shift to global market scenario and Cabinet formation. Nifty may find resistance in the band of 7500-7700. Part profit booking and reduction of leverage positions has been advised to traders.
SmartInvestor:BHEL has seen a sharp surge from Rs 180 levels in early May. Is the stock likely to consolidate before resuming its uptrend? What is the medium term outlook on the stock and the resistances and targets for the same?
Ranak Merchant:BHEL was the underperformer from the capital goods lot and the stock has come back with vengeance. While the recent runup has been sharp, this appears to be the tip of the iceberg as compared to what the stock has potential of achieving. Nonetheless some consolidation could unfold before the next run gains momentum. Book part profits and hold balance for the bigger picture. Fresh entry only on a correction.
SmartInvestor:IRB Infra has emerged as one of the top performing stocks. The stock has surged from Rs 115 levels. What are the chart indicating for the stock at current levels? What is your advice to investors who wish to enter the stocK?
Ranak Merchant:One more beaten down name from the space that gave a huge swing once the tables turned. The run up has been substantial and 185 poses a short term resistance, above which the next barrier would be 205 (multiple top zone). Book part profits if unable to close above 185 in this week and keep a strict trailing stop loss. Dips to be used to re enter.
SmartInvestor:Markets continue to be in an uptrend ahead of the BJP-led NDA forming the new government at the centre. The Nifty has retreated after topping 7,300 levels in early trades. What is your advice to traders on the benchmark index in the near term?
Ranak Merchant:The entire election saga unfolded with frenzy and markets have gained in style. With the recent runup benchmark indices have seen 14%+ upmove in a months time. With the event now behind us focus would shift to global market scenario and Cabinet formation. Nifty may find resistance in the band of 7500-7700. Part profit booking and reduction of leverage positions has been advised to traders.
SmartInvestor:BHEL has seen a sharp surge from Rs 180 levels in early May. Is the stock likely to consolidate before resuming its uptrend? What is the medium term outlook on the stock and the resistances and targets for the same?
Ranak Merchant:BHEL was the underperformer from the capital goods lot and the stock has come back with vengeance. While the recent runup has been sharp, this appears to be the tip of the iceberg as compared to what the stock has potential of achieving. Nonetheless some consolidation could unfold before the next run gains momentum. Book part profits and hold balance for the bigger picture. Fresh entry only on a correction.
SmartInvestor:IRB Infra has emerged as one of the top performing stocks. The stock has surged from Rs 115 levels. What are the chart indicating for the stock at current levels? What is your advice to investors who wish to enter the stocK?
Ranak Merchant:One more beaten down name from the space that gave a huge swing once the tables turned. The run up has been substantial and 185 poses a short term resistance, above which the next barrier would be 205 (multiple top zone). Book part profits if unable to close above 185 in this week and keep a strict trailing stop loss. Dips to be used to re enter.
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