Markets are witnessing huge amount of volume being traded among midcap technology stocks.
These volumes indicate that fresh amount of interest is being built for such stocks. Experts give their views on how to trade a few select midcap tech stocks.
VK Sharma, of Anagram Stock Broking, feels that such stocks are definitely bullish and it would be a good idea to enter such stocks if they follow a sideways pattern.
"D-Link is one stock where there have been huge amounts of volume; almost 31 lakh (3.1 million) shares traded on Friday and the stock has moved up very sharply from Rs 70 to Rs 90. The huge volume tells you a story that fresh amount of interest is being built in the stock," said Sharma.
"One would like to see a side ways pattern here because of the sharp rise before jumping on to the bandwagon. But definitely the stock is bullish and if it remains sideways for 2-3 days, then it would be a good idea to enter at that point of time," he added.
He further states that midcap tech stocks like Aftek Infosys too has seen huge volumes on Friday and the stock has closed at around Rs 55; it has a support at around Rs 48 and the next resistance would be around Rs 60.
Sharma also adds, "In Sonata Software, we have seen huge rise coming from Rs 20
Polaris too is a similar story with huge volumes accompanied by a good rise from Rs 70 to Rs 90, but it is a derivative stock and therefore one needs to be very cautious about building positions after a Rs 20 jump, says Sharma.
Ambareesh Baliga, of Karvy Stock Broking, feels that he would probably exit Polaris at this point of time as it has had a good pullback from lower levels.
"At these levels, I will possibly exit Polaris Software Lab because it had a good pullback from lower levels. I do not see it going much beyond Rs 100-105 levels. So Rs 96-97 is a decent level to exit."
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