Short Reliance Capital, Pantaloon Retails: Sukhani

Sukhani told CNBC-TV18, "All Anil Dhirubhai Ambani Group (ADAG) stocks had a decent rally and that seems to be over. The rally could have been a relief rally and will start a big decline but at best a deep correction is in the offing. So either ways there is more on the downside. The sell-off is just a beginning of what could be a move towards lower levels of support. So Reliance Capital is a stock for the short sell today. It is suggesting that 20-30 points of more downside are available."

He further added, "Pantaloon Retails is not only a weak chart but it also made a bearish distribution pattern and confirmed it and that suggests that the rally from Rs 140 to Rs 200 is over and a big decline is in the offing. One cannot say whether that decline cracks Rs 140 or not but the pattern tradable on the downside, not just as a day trade but also as a position trade. So traders should be alert on this, take positions, buy puts, sell futures but go for a short trade."       

Disclosure: I have no holdings in the above stocks.