Sell Rel Capital, Rel Power, IFCI: Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater, FortuneWizard.com shares his trading strategy of the day.

I am going to short Reliance Capital for a target of close to Rs 278 odd mark with a closing stop loss of Rs 310. Anil Dhirubhai Ambani Group (ADAG) is one group where we felt Reliance Power, Reliance Infrastructure and Reliance Capital has 50 percent retracement from the earlier highs and now with market weakening we feel the target of Rs 235, the actual downgrade that we did is likely to come in next 10-15 days. Therefore, on technical basis one can go short on this particular stock. Reliance Power is a stock where we feel that the fundamental value is much lower. Last time we downgraded this stock for a target of Rs 71 and then we revised it to a target of Rs 52. Now we feel the weakness is likely to persist even at current levels. Go short on this stock; make a positional stop loss of Rs 62 on closing basis for a target of Rs 52. However, for intraday take a target of close to Rs 56 levels. IFCI seeing some long unwinding in the positions and the likely outcome will be that the stock could correct to Rs 22 odd levels. We feel the stock has got nothing on its side right now to suggest even on technical pattern. Thus a technical level of Rs 22, which is very significant for IFCI, should be tested in next two-three days. Maintain a stop loss of around Rs 26.2 on the stock.