Bad bets in the current market

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The markets are displaying a choppy trend at present.

Technical analyst, Deepak Mohoni says, "The market may not be too volatile in its movements but it will be choppy going both ways and there will be a mixed trend in stocks. If the markets ape the international markets, then they will probably finish without too much change in the Index today, unless there is a big reversal in the markets worldwide."

Amisha Vora of Prabhudas Lilladher says that the markets will remain choppy and volatile before making new highs.

She says, "The FII flows have not been very great in the past few days but fundamentally the markets look positive. Oil prices have come down and that is a big positive for many sectors in the markets. If no other fresh news disturbs the markets, then they could sustain the uptrend and make new highs. However, the markets could remain choppy and volatile before making new highs."

Analysts believe that stocks like Ranbaxy , SRF , and IOB are displaying weak trends are are not good bets in the current market.

On Ranbaxy:

Mohoni says, "Overall Ranbaxy is not a strong stock. There was a little bit of buying in it during the rally. However, I would not put it as a buy and the level to watch out for this stock will be Rs 385-380, once it starts going below that one could see a decline in it again."

On SRF:

"SRF has moved upto a 3-week high, it has got a little bit of momentum back, but it is not moving as fast as it had done in the past. It is just a participant in the overall market rally, the Sensex was up 100 points yesterday, and that favoured the stock. It is still a bit ahead of the average rate of rise of most stocks which are traded heavily. SRF is not a momentum leader like it was before," says Mohoni

Indian Overseas Bank:

Mohoni says, "IOB is quite a volatile and choppy stock most of the times. Its moves yesterday could be seen as an exception. However, it may or may not sustain at the current levels. Yesterday's was a single day move and not one that could determine a trend and confirm that it is likely to continue on an upmove."

By-Sakshi Sharma

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