Which are the stocks to watch out for?

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It has been yet another disappointing day on Dalal Street. The indices tumbled shortly after a strong opening and traded in a narrow range. A sharp slip in the last hour pulled the markets into the negative territory.

 

Nifty closed at 4,147 down 24 points, while the Sensex shut shop at 14,080 down 83 points.

 

Technical Analyst Sudarshan Sukhani of Technical Trends is negative on TCS, IDFC and IDBI.  

 

Here's how Sudarshan Sukhani views the stocks on board:

 

On TCS :

 

TCS is standing at some long-term support. If TCS breaks down and that is the first of the stocks to suggest that it is breaking down from a trading range, it should show the way for the other IT majors. The IT pack, after giving some false hopes, is back to where it was, in an intermediate downtrend and seeking lower levels.

 

On Tisco :

 

It is a much stronger chart than even the Nifty or even Reliance. So, as of now, it certainly suggests weakness and that is something we can all see. Beyond that, it is not telling us that the uptrend is over. It could simply break down, though that is a different issue.                                       

 

On IDFC , IFCI and IDBI :

 

IFCI gives the impression that investors should wait for a dip and then buy it. Higher levels appear to be coming in the charts but not necessarily now. We have seen a big run up, so people who want to trade or invest in IFCI would be well advised to wait patiently for any big correction and then enter.

 

There is always the possibility that it may not correct. But for IDBI and IDFC, there are no opportunities on the charts. Both have rallied well but as of now, I do not think that there is any sense of saying that these are buy on dip stocks. They are just neutral.

 

On ICICI :

 

I would have no views on the issue that opens today. I do not have the idea of pricing. But on the charts, it does suggest that ICICI has much more downside than upside. So, I would assume that after the issue is over, we will probably see a small dip in the stock, rather than upside.

 

Disclosures:

 

I do not hold any Nifty stocks, but do hold small and midcap stocks.