With the Sensex trading at all time highs this week, and the uptrend seemingly continuing, one must question which sectors, stocks to evade at this time.
Technical analyst VK Sharma of Anagram Stock Broking and Amit Dalal of Amit Nalin Securities advise to stay away from ONGC and the FMCG sector in general.
According to VK Sharma, with crude going down, ONGC looks a bit weak. "It doesn't look good at this point in time. But technically I don't see the stock going below Rs 780, where this stock has a good support.
"We could see a bounce back happening in that counter at those levels, but currently we have a bearish kind of a candle on the stock," he says.
Meanwhile, Amit Dalal is not too upbeat on the FMCG pack. He says, "The FMCG numbers were not very exciting, infact quite flat. They are very expensively or fairly valued right now. Therefore I would perhaps allocate more capital to midcap technology stocks where there is a huge interest coming in."
"These sectors have tremendous promise for the next few quarters. So FMCG is a sector where I would not put in more money right now at these valuations," he adds.For more information about trading and markets log on to www.moneycontrol.com