Sell PFC; buy Ashok Leyland, Rel Comm: Dutta

Devangshu Dutta, Consulting Editor, Business Standard is of the view that one can short Power Finance Corporation while can buy Ashok Leyland, Reliance Communications.

Dutta told CNBC-TV18, “Non Banking Financial Companies (NBFCs) is actually people have sold out before the credit policy. Housing Development Finance Corporation (HDFC) itself has been moving down over the last couple of sessions. So maybe HDFC is a short one, hesitate to say it about a counter that’s that well regarded fundamentally, but maybe it is a short. Again, I think Power Finance Corporation Limited (PFC) could drop a bit. Those would be my short candidates as such."
He further added, “If you are looking at a fairly high-risk counters I would say that two stocks, which could rally one is Ashok Leyland. It is in the Rs 27-28 range. It could move to Rs 30 plus perhaps. The another would be Reliance Communications, maybe Idea as well. I think the telecom sector has been hammered pretty badly. Bharti Airtel started bouncing back. Idea and Reliance Communications could follow, move up a bit that’s in mid-cap space.”