9 stocks that were buzzing last week, how to trade them now

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After a tough fight between the bulls and bears, the markets ended the week with marginal gains. During the week, the markets witnessed bouts of volatility with low volumes. The Sensex gained 0.5% and the Nifty rose 0.85%.

Grasim topped the index gainers list. It surged 11.3% this week.  JP Associates , DLF , Cairn India , Siemens , Hindalco , Tata Power and M&M were the other index gainers. However, Maruti , TCS , HCL Tech and Infosys were the index losers.

Technical Analyst, Mitesh Thacker, miteshthacker.com and Phani Sekhar, Fund Manager, Angel Broking discuss various stocks, which were buzzing last week and advise how to trade them in the next week.

Infosys

Sekhar told CNBC-TV18, "Infosys' underperformance is not related to the impending weak numbers because the numbers are going to be strong. Its mainly because of the high valuations that Infosys and other frontline IT stocks, except maybe HCL Tech, are enjoying. Infosys is trading somewhere around 20 times and even if they report good numbers, and FY11 is expected to register around 20-22% growth, such valuations are very difficult to justify. So if the investor has a long term horizon, one and a half year or so one, can hold. But for all practical purposes, one can think of booking profits since one is sitting on reasonable amount of profits and think of re-entering once this stock corrects."

Thacker told CNBC-TV18, "Infosys Technologies share price has been facing a lot of pressure at the higher levels. After having phenomenal last two quarters there is some kind profit booking coming in the stock price. I think the upside would be limited and keeping that view in mind, I think it doesn't make sense to hold the stock. Once it breaks below the support levels of 2,380 there could be more declines, so I would also suggest an exit on this stock."

Nalco

Thacker told CNBC-TV18, "If someone is thinking of entering Nalco, they have missed a good part of the rally. We have seen this stock run up from levels from Rs 400 to Rs 500 plus in a short span of 3-4 days. I think on the upside Rs 535 is the highest weekly closing and keeping in mind that Rs 535-550 will attract a lot of supply area, I would rather suggest that around those levels profit booking should be observed."

Sekhar told CNBC-TV18, "A good part of the rally has already been missed in Nalco. While this corporate action is going to generate excitement, fundamentally it means very less because at the current valuations, Nalco demands around 5.9 times EV to EBDITA and those are not the kind of valuation at which you buy commodity companies, especially when the best of the commodity business is already been factored as far as FY11 is concerned. So I would suggest that either one should wait for another 3-6 months for a 20-25% dip, which is not unusual in commodity companies and for people who hold, Nalco it's a good time to sell."