Sell Reliance Infra on rally: Parag Doctor

Parag Doctor, Head - Trading Strategies, Keynote Capital's is of the view that one can sell Reliance Infrastructure on rally.

Doctor told CNBC-TV18, “Reliance Infrastructure has been making a new 52 week lows, in the last month or so it has plunged from around Rs 474-480 to Rs 300. There has been historical support in this zone between Rs 300 and Rs 330 it is multi month support and there is older multi year support little lower so there is a good chance that bottom would be made somewhere in this zone, maybe another 10 percent or so and then the recovery process would start.”
He further added, “So, for a trader it is still a sell on rally kind of mode till we don’t cross maybe Rs 350-360 or at the most Rs 400 or so. So, pullback rallies would terminate there but for a longer-term investor we would look at maybe Rs 550-600 in the next couple of years. Beyond that the visibility is not there in the entire sector so it is going to be a painful recovery on the upside and the investor would have to wait for some more time or he can switch to larger cap stocks like Larsen and Toubro (L&T) which would give more clear upside returns.”