There is a near unanimous agreement amongst market participants that rural theme holds promise for stock market investors going ahead. Why? Well the reasons are numerous -- from a plentiful monsoon that will give a boost to Kharif and rabi crops to 2014 general elections ahead which will see many sops being doled by the political class to appease the rural-based votebank.
Devangshu Dutta tells Manu Kaushik what stocks to buy in order to cash in on the rural theme going ahead. Also find out what does Devangshu think about the current rally. Will it sustain, find out his technical view of things:
The Benchmark share indices continued to trade flat in noon trades on Tuesday tracking weak Asian cues with the Nifty find tough resistance above 6,200.
At 1PM, the 30-share Sensex was up 25 points at 20,876 and the 50-share Nifty was up 7 points at 6,190.
SmartInvestor : Benchmarks are holding on to their gains today and Nifty has so far sustained above 6200 mark. Will this rally that began on Thursday stay. What are the levels to watch out for?
Devangshu Datta : Expected to remain flat today. This is actually likely to transform into a range trading pattern with the Nifty moving between 6000-6300 with futures premium relative to spot declining as settlement comes closer. A breakout above 6350 would be a strong positive signal. Given that, we have congestion zones at roughly 50-pt intervals at 6000, 6050, 6100, 6150 etc. So a trader can use those as support-resistance markers and set stop losses accordingly.
SmartInvestor : Do you have any favorites from the realty pack?
Devangshu Datta : I'd prefer with the ones which are also in the F&O list because I want the advantage of hedging or shorting if the trend reverses. Don't think there is anything worth holding for the long-term. Today IBRE seems strong but it may be due for profit booking in the late afternoon. DLF and Unitech have useful range trading patterns and could move up further. Keep stops at between 1-2 per cent below entry price if you go long.
SmartInvestor : To cash in on plentiful monsoon theme, what agri-stocks would you recommend to investors with a medium term view?
Devangshu Dutta tells Manu Kaushik what stocks to buy in order to cash in on the rural theme going ahead. Also find out what does Devangshu think about the current rally. Will it sustain, find out his technical view of things:
The Benchmark share indices continued to trade flat in noon trades on Tuesday tracking weak Asian cues with the Nifty find tough resistance above 6,200.
At 1PM, the 30-share Sensex was up 25 points at 20,876 and the 50-share Nifty was up 7 points at 6,190.
SmartInvestor : Benchmarks are holding on to their gains today and Nifty has so far sustained above 6200 mark. Will this rally that began on Thursday stay. What are the levels to watch out for?
Devangshu Datta : Expected to remain flat today. This is actually likely to transform into a range trading pattern with the Nifty moving between 6000-6300 with futures premium relative to spot declining as settlement comes closer. A breakout above 6350 would be a strong positive signal. Given that, we have congestion zones at roughly 50-pt intervals at 6000, 6050, 6100, 6150 etc. So a trader can use those as support-resistance markers and set stop losses accordingly.
SmartInvestor : Do you have any favorites from the realty pack?
Devangshu Datta : I'd prefer with the ones which are also in the F&O list because I want the advantage of hedging or shorting if the trend reverses. Don't think there is anything worth holding for the long-term. Today IBRE seems strong but it may be due for profit booking in the late afternoon. DLF and Unitech have useful range trading patterns and could move up further. Keep stops at between 1-2 per cent below entry price if you go long.
SmartInvestor : To cash in on plentiful monsoon theme, what agri-stocks would you recommend to investors with a medium term view?
