Short HDFC Bank, may slip to Rs 545- 550: Harchekar

Amit Harchekar of IIFL advice traders to short HDFC Bank as it may slip to Rs 545- 550 in the near term.

Harchekar told CNBC-TV18, "We have seen a good up move in Reliance Industries. The stock is trading at a resistance zone of Rs 805-810. I am not expecting the stock to sustain beyond Rs 810 in the short term. HDFC and HDFC Bank are the stocks which are looking good for shorting." He further added, "HDFC is clearly showing a negative divergence on the RSI and when we look into HDFC Bank, the stock is facing resistance at Rs 610 – it becomes a good short candidate for a target of Rs 545- 550 in the near term." "In infrastructure space L&T is flirting with a resistance zone of Rs 1420-Rs 1425 it becomes a very good short sell candidate for target of Rs 1300. So most of these largecaps are already trading into its resistance zone apart from ITC which still has an upside potential of 3% while Reliance has surprised on the positive side so overall the up move which we are seeing in this market is due to the sharp uptick in the oil and gas pack. Rest of the bank stocks are showing negative divergence. So, you should short banks, you can go long on FMCG, and oil and gas even at current levels."