Hot Stocks | Infosys can jump 11% in short term; sell signal on tech charts for Berger Paints, Bajaj Auto

Nifty tested its 100-day average and reversed with profit-booking across sectors and stocks over the last 3 days.

We continue to believe the upside is being capped at higher levels and one should wait for declines to enter near 9,600 which is the gap area it had left in the last week of May F&O expiry.

The sharp fall on Thursday’s trade has dented the immediate upmove and any bounce on the higher side should be used to reduce leveraged positions from high beta sectors like realty, metals and mid-caps as they had a strong move in the last fortnight.

India VIX is trading flat, holding its 200-day average and any spike above its medium-term average at 35 levels could increase volatility.

Among sectors IT, Energy and FMCG are resisting crossing its 200-day average, trading flat to negative week-on-week.

We expect these sectors to lead the upmove from lower levels so investors should focus on adding names from these sectors.