Vishal Kshatriya, Sr. derivative and technical analyst at Edelweiss recommends initiating pair trade on GE shipping and Shipping Corporation . "Traders can go long on GE shipping and short on SCI on a rupee neutral basis" he told CNBC-TV18. According to him, traders should maintain a price ratio of 2.57 with a target price ratio of 2.35 and a stop loss of 2.68.
He also suggests going short on Renuka Sugar . "We believe that the rally last week was primarily driven by a short covering and the stock will resume its downtrend in coming days" he said. He advices traders to go short on Renuka with target of Rs 58 and a stop loss of Rs 66.
According to Aditya Agarwal, Sr. derivative analyst, Way2Wealth Securities Pvt. Ltd, GAIL has seen a major correction from Rs 470-475 levels and closed around Rs 442-443. "We are expecting that this short covering will continue for some more time and GAIL may again test its previous highs of 470-475" he told CNBC-TV18. He recommends taking a long position in GAIL with a stop loss of Rs 434 with a target of Rs 470.
Reliance Capital , his second pick, has seen continuous selling pressure in any intra day rally or any bounce back. "From these levels, the stock is weak. Rs 434 is the immediate support level" said Agarwal. Therefore, he recommends selling Reliance Capital with a stop loss of Rs 444 and target of Rs 410.
