Shardul Kulkarni negative on REC

Shardul Kulkarni of Angel Broking told CNBC-TV18, "Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) is basically money lenders to the infrastructure space. The chart structure of both of them are quite similar, very strong lower top lower bottom cycle. I did not recommend them because I am not able to find a decent risk to reward ratio at this point of time. Plus some confirmatory signals are still yet to come."

"If PFC falls below Rs 125 that is the time wherein one should ideally look at initiating fresh shorts. After that I would expect the stock to move towards Rs 105 or even Rs 100 which was basically the previous lows," he said.  "In case of REC the view is negative. The stock has fallen 4.5 percent today. One can initiate shorts, I would look at potential target of around Rs 165 over the next 8-10 trading sessions." Disclosure: It is possible that we have positions in the stock discussed and we have recommended them to our clients.