Short Hexaware, Opto Circuits, HDIL: Pankaj Jain

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Sunteck Wealthmax shares trading strategy of the day.

On the back of report that promoters have sold some of their shares, this led to huge volatility in Hexaware Technologies and apart from that recent quarter results of Hexaware has not been all that strong. Stock closed below 50 day moving average (DMA) and the kind of negative momentum stock showed, it could breach 20 DMA today. Taking these factors into consideration we have gone short on Hexaware.
My second call is short call on Opto Circuits India. The stock continues to show scary weakness on back of reports of financial mismanagement and poor corporate governance. The stock is trading at multiple four-five year low and technically it is looking very weak and in absolutely no man’s land or negative zone. Taking that into consideration the worst is not over for this stock. We have gone short on Opto Circuit.
I have a short call on HDIL. This stock has not recovered since management sold about 1 percent of their holding and the kind of explanation the management gave was not digestible to the market and most of second tier reality stocks are facing the heat and HDIL, technically there was a support at about Rs 64-65 levels and the stock closed below that seems to be in a negative momentum.
We have a short call on Welspun Corp. We expected that there could be a bounce back in this stock in Tuesday’s trading but that didn’t happen and stock continues to face scary weakness and there was a stone like fall in the stock. Before closing there was strong bout of selling in the stock and maybe because the stock is coming out of Futures and Options (F&O) list from April series, we are seeing serious unwinding. The kind of added negative momentum we saw in this stock towards the close. We believe that stock is headed much lower and taking that into consideration we have gone short on this stock.