Realty & Auto: Massive sell-off opens up a chance for shorting!

4 de ago.

REALTY

• Following an impressive bull run, the index has begun to consolidate and has taken the shape of a Rounding Top pattern.
  
• With significant selling pressure, the index is currently hovering around its trendline support level, which also happens to be the neckline of the Rounding Top pattern.
  
• If the trendline is breached, we could potentially witness a correction in the real estate sector.
  
• This sell-off presents an opportunity to take short positions in stocks like DLF, Godrej Properties etc.
  

AUTO

• The automotive industry has experienced a significant increase and is one of the key sectors contributing to the strong rally of Nifty.
  
• Following a period of consolidation, a breakout occurred but the index encountered a notable rejection at its all-time high.
  
• Following a significant gap, the auto index dropped and is anticipated to decline even further.
  
• Given this situation, there is a chance to open short positions in certain stocks such as M&M, Escorts etc.