Sanjeev Agarwal, CEO of Dynamix Research & Capital Management advised selling IDFC at around Rs 160-165. According to him, the upside in stock remains limited.
Agarwal told CNBC-TV18, “There has been a strong resistance around Rs 160 to Rs 165 in IDFC. I think it will be very difficult for this share to negotiate this resistance band. It is better exiting around Rs 161-Rs 165 because ideally I am just looking that this rise is a pullback and not a fresh rally for a new high or something like that.”
He further added, “We have seen quite a significant rally from the bottom of 5470 to 6,000 on Nifty. I think this rally which is happening because of the short covering and maybe because of the RBI policy tomorrow. And it will be clear after RBI policy how the market is going to move. I don’t think there is a very big room for cutting the repo rates more than 25 basis points and let us see that what RBI governor takes a stance on CRR which maybe some sweetener is there, maybe some kind of holding the rally kind of a situation might happen. I am seeing the upside remains limited. Though there is no weakness sign but on any weakness sign we will go in for a sell.”