Mkt to trade in 4250-4450 range till Budget: Ashwani Gujral

Q: Two more stocks - India Infoline and Shipping Corporation?

A: India Infoline has support around Rs 120. If it gets past Rs 141, we are looking at Rs 170. Shipping Corporation has completed its correction. It could get back up to Rs 155, but these are the kind of stocks you bail out before the budget because maybe something in the budget is expected and if that does not happen they will come back down to Rs 110-115. Right now, it is in a good momentum, maybe another couple of good days.

Q: Two underperformers - Glenmark Pharma and Gujarat NRE both down about 10-13% in three days?

A: Pharma stocks clearly have been showing weakness. Glenmark particularly has some news items. Rs 200 is key support, if it breaks down below Rs 200, it is back to Rs 160. I think for the moment Rs 240 to about Rs 260 has now become a fairly key resistance. The uptrend that it was showing is probably over.

The metal space again is showing some strength. But in the Gujarat NRE Coke, we are probably looking a bit bearish. Rs 44 is key support. If Rs 44 gets taken out, then we could get down to about Rs 32-33. I think Sesa Goa is much better. It is still managing to hold to Rs 170-175. On declines if that can be bought, it could get back up to Rs 220.

Q: How do you trade now - 4337 on the Nifty - can you take a trade this way or that on the index?

A: We are bang in the middle of a range and 4250-4450 is the range. If we get an intraday dip towards 4,250, then it is a good place to get in. Otherwise, you know there is no fun doing 10 points up and 10 points down.

Q: Would you take profits in any of your education stocks - Educomp, Aptech or Everonn Systems or let them ride for a bit?

A: You should start the process of taking profits because as it builds up to the event, even if they get something positive, the markets will take profits. So, either way you need to start taking some of your profits off.

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