Shardul Kulkarni of Angel Broking has recommended traders to sell Rural Electrification Corporation (REC) around Rs 218, as the stock is expected to decline to Rs 200-195 levels.
Kulkarni told CNBC-TV18, "REC is still very much in a strong lower top-lower bottom cycle. Going forward you will see further lower levels. Given with what is happening with the Nifty, every day you see that the market just opens about 30-40 points positive but by the time it ends, it is about 100 points off the day's high."
He further added, "We will see lower levels in case of REC. The charts are fairly clear, you have an ABC pattern which is already there. Time wise also, we see that the stock should head towards Rs 200-195 as the lower side levels. So we are recommending a sell with Rs 218 as a stop loss, just about Rs 3-4 higher from current levels. Good downside potential is there in case of REC."
Disclosures: It is possible that we have positions in the stocks we have discussed and we have recommended them to our clients.