Infrastructure Spending may Boost IDFC Revenues: Short term Strategy Buy on Lower Levels

IDFC is amongst the leading infrastructure finance companies, and it was listed on NSE on 12 August 2005, since then the company was responsible for funding the large number of infrastructure projects in the country. IDFC also was one of major company to get beaten by the recession of the year 2008. Also this year (2011) is still not good for the company and we have seen the stock has entered the bearish trend on 19 November 2010 and since then we have seen the stock price correcting about 65% from the 190 level to 89 level, and we see there should be no change in this trend until the sector fundamentals change. So we are having a strong trending stock even though its down trend, but we will be looking for selling opportunities as long as the trend is down. Following the technical analysis we see that traders can go short on IDFC below 130 level for short term target of 120 and 111 levels, also placing the stop loss orders above 135 level. We advice traders to keep trailing the stop loss when in profit to lock the profits, also one needs to keep looking for the fundamentals so that there is no contrarion indication for this short position. All the positions discussed on IDFC here are based on futures contract and should not be traded as option (call/put) contracts.