The market violated the bottom made on Friday and closed at a new low. The general sentiment is highly pessimistic and the Indicators are oversold. The fall has been approximately 2000 points with no intermittent bounce backs ( which could sustain for more than 1 day!)
We did anticipate a bottom and trailing stop loss was hit yesterday. The stocks recommended in this blog have not violated the lows made on Friday where the call was to go long. Sesa Goa was the only one to disappoint.
Great Eastern Shipping and Sun Pharma have stood against the tide and Divis Lab is hovering around the levels achieved on Friday.
As per time analysis, the market should bounce from here given that the indicators are oversold and the sentiment is highly negative.Don't give up too soon.Watchout for 15900 on Index (15600 worst case, though I do not expect it to arrive ) .
I maintain the same stocks as you always Buy the Beast and Short the Sick.
Real Estate presents a good opportunity at these levels. But beware as they are high beta stocks. Strictly for risky traders.
DLF with a stop loss of 245 and Unitech with a stop loss of 60. If market turns from here, which I expect it will, you will be surprised at the returns!!
Have a great trading day,
Regards,
Rahul T.
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