Which are the stocks to watch out for?

The nuclear impasse and skyrocketing crude prices dealt a double blow to the markets. Nifty closed at 4,041 down 96 points, while the Sensex shut shop at 13,462 down 341 points.

Rahul Mohindar of viratechindia.com said the market is approaching strong support. He stated that the 4,000 mark is definitely some kind of a level which people are keeping in mind. "I couldn’t really conclude and say there are any clear cut positives or reasons to immediately go out and buy the market for even a short to medium-term perspective."

He would wait it out till it consolidates and breaks out. So, at this stage if one is short, he recommends to stay partially short. Possibly, one could look at a level close to 13,000 plus-minus 200 points coming in somewhere there, he said.     

Rahul Mohindar sees downside in IVRCL, Gammon, HDIL and Unitech. He is negative on ITC.

Here is how he view the stocks on board:

On IVRCL, Gammon, HDIL & Unitech

Infrastructure stocks will be much more negative. If one is looking at stocks like IVRCL and Gammon, there is a still a good 10-15% downside. There has been very negative sentiment in these. It points to some severe short-term weakness which we were experiencing and the turbulence is not over in this sector.

If one is a trader, these are stocks which one could attempt shorting or staying short with. This is relatively going to be one of the weaker sectors. Even for that matter, real estate looks weak, including stocks like HDIL and Unitech. From a short-term trader’s point of view, one is still looking for 10-12% downside across the board.  

On ITC and HUL:

Disclosure: 

It is safe to assume that my clients and I may have an investment interest in the stocks/sectors discussed.