Chart Check: Should you buy power stocks?

CERC has ruled in favour of Adani Power on the issue of supply of electricity from its imported coal-based power project at Mundra in Gujarat. Most stocks from the sector have rallied as a result. Is it time to buy?


Smartinvestor : The markets have been trading flat today with the Sensex flirting with the 19,000 mark. Do you expect the markets to slip from going ahead?

Shshank Mehta : We are looking at markets breaking certain key levels below which we will advise to initiate fresh shorts; key support levels for Nifty futures is 5715-5722 and 5670-5675, below this levels market will again be in control of bears and holding any long positions will not be prudent.
 

At current levels we cannot rule out the possibility of a bounce-back. The broader trend, however, remains weak given the below average rollovers indicating that traders with a bullish view allowed majority of their positions to expire in Mar'13 expiry.

Smartinvestor : Power sector stocks are on fire today. What's your strategy regarding this space? Do you like anything for a long / short position?



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