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Chart Check
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Hormuz Maloo
Technical Analyst, Geojit BNP Paribas SecuritiesDate : 04 Jun 12 | 12:00 PM |
| Smartinvestor : Hi, this is Puneet Wadhwa and we have Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Securities back with us for the Chart Check in noon deals |
| Smartinvestor : Good afternoon Hormuz and welcome back |
| Hormuz Maloo : Good afternoon, Glad to be here. |
| Smartinvestor : The Nifty is testing the 4,800 mark in noon deals today. How do you see the markets panning out in the June series? Should one stay away for now? |
| Hormuz Maloo : The Nifty made a low at 4788.95 points on 18-5-12. It is now testing that same level once more. In the two weeks since 18-5-12, the Nifty did initially move up somewhat but did not exhibit any real sign of strength and have now entered a short term downtrend once more. The long-term trend of the Nifty remains a downtrend since more than the last year. At best what we can hope for now is a medium term uptrend. But so far, there is no short-term buy signal received. Which means that we continue to remain bearish on the market as of now. Traders should wait for the current short-term downtrend to exhaust itself before taking the smallest of long positions. |
| Smartinvestor : Are there any stocks in the large-cap universe that are showing a clear "sell " signal given their technical chart patterns? |
| Hormuz Maloo : Technically, a clear "sell" signal is not witnessed at this time as most stocks are already in downtrends - long, medium and short term. At the current time we simply expect the downtrend to continue. At best some stocks may move up somewhat to test their long-term resistance levels. I think that given the weak market conditions, all stocks that have reported weak quarterly results will continue to decline. Even the other stocks may only witness a small up move if the market manages to gain support near current levels. But such up moves should be used to go short at higher levels. |
| Smartinvestor : What is your view on the mid-cap stocks? Do you like anything in this space for a long / short position? |
| Hormuz Maloo : The answer above applies to mid-caps as well. In fact, mid-caps and small-caps are the most dangerous stocks to enter into in this phase of a bear market. The pace of decline of smaller stocks will accelerate as the decline continues. An investor can hold on to the stocks he already has in the hope of recouping his losses in the next bull market, but investing fresh money in mid and small caps is certainly not advisable at this time. |
| Smartinvestor : Thanks, Hormuz for your time and advice. Please give us your disclosures (if any) |
| Hormuz Maloo : No personal holdings in any of the stocks discussed. Thank you and see you again next week. |
| Hormuz Maloo has logged out at 04-Jun-2012 12:31:00 pm |
| Smartinvestor has logged out at 04-Jun-2012 12:31:05 pm |
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