Sell REC, PFC, Suzlon Energy: Tater

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

I am going to short Rural Electrification Corporation Limited (REC) for a target of Rs 228 with a closing stop of around Rs 238. Yesterday there was a market buzz about how the loans would not be treated as collaterals which could go negative for companies like REC and few other companies. Thus one can go short on this particular stock with the same stop loss. Even on technical front there is a resistance around at Rs 238-240 zone and now with this particular stock likely to dwindle from current levels this could be a very good resistance and a good strategy to short on risk-reward front. Power Finance Corporation (PFC) is another short from our side. PFC numbers have not been up to our expectations and thus we feel there could be some pressure on this particular stock. Short with a target of close to Rs 200 odd with a stop of around Rs 208.10 on this particular stock. National Mineral Development Corporation (NMDC) is a long from my side. NMDC gave a clarity that why it will not be investing its surplus cash into other Public Sector Undertakings (PSU). This can go positive for the stock as the stock has been battering because of this particular rumour. If you see the stock has got very good support around at Rs 150 the Offer For Sale (OFS) price which roughly was around Rs 149.81 and on the higher side it is facing some resistance around Rs 168. So it is a range bound trade where we feel now with the clarity coming in the stock could eventually go and test Rs 164, however intraday go long on this particular stock with a stop of Rs 156 and target of Rs 159.90. Suzlon Energy is a short from our side. We feel Suzlon would face lot of resistance around Rs 21.5-22 zone where one could go and short this stock for a target of Rs 19, eventually Rs 17. Go short on this particular stock for intraday perspective with a stop loss of Rs 21.5 and a target of Rs 20.70 and Rs 20.