Go long in PFC with stoploss of Rs 172: Kulkarni

Kulkarni told CNBC-TV18, "PFC has already given a breakout in today’s trading session. The breakout levels was actually Rs 177 and beyond that the break-out has already taken place. The stock is already at Rs 181 so any declines towards Rs 177, one can go long with a stop loss at Rs 172."

He further added, "The weekly chart structure is not that bullish and the daily chart structure suggest that, there is a possibility of Rs 192-Rs 193 being tested but in this short term trade one should be looking at booking profits at Rs 192 to Rs 193."

Rural Electrification Corporation (REC) has given a break-out. The chart structures are so similar and breakouts have already taken place in both these stocks so buying at these prices is not recommended. In case of PFC declines should be used to buy but REC has already run up 6.5%. I would say that those holding the stock, those who have been lucky enough to buy at lower levels they should continue to hold on but fresh investments or fresh buying at this price is not recommended. I would expect REC to test around Rs 205 to Rs 208 levels in the near future."

Disclosures: It is possible that we have positions in some of the stocks discussed and we have recommended them to our clients.