Break outs

I had written about potential bottoming of the telecom stocks in March. Bharti Airtel, Idea and Reliance Communications were showing signs of finding strong supports in March. Click here.
These stocks seem to have scared the shorts and hence have broken out upwards. Bharti remains the top pick in telecom and can rise further. Must be bought on all dips from now on. Though it could have been bought earlier, I usually wait for the market to signal a positive trend reversal with strong volumes. This has happened only now. Hence the strategy.

Larsen is attracting aggressive buying may be due to expectations of good results and a potential bonus in October. IDFC is now finding support at 180. HDFC and HDFC Bank are in strong uptrends. It is difficult to find stocks to buy because they are getting expensive. One approach is to stay in cash and wait for corrections. Second method is to buy a fixed amount every month irrespective of price levels. We can choose any method.

rgds
Vibhas