Siddharth Bhamre, Angel Broking told CNBC-TV18, "If you look at DLF, lot of short positions have been formed ever since stock started correcting from Rs 250 plus levels. Right now, the stock is around Rs 232. It has a good support between Rs 225-230."
He further added, "If market stabilises or bounces which is quite likely according to us from derivates perspective, you might see some short covering bounce in this space especially DLF. Even if that doesn’t happen, say if market doesn’t go up and stock corrects and breaches its support which people are highlighting in DLF."
"Indiabulls Real Estate on the other hand, we have seen that the stock has run up from Rs 55 to Rs 75 mainly because of short covering and then we saw between Rs 75-80 some built up happening. Yesterday’s fall in Indiabulls Real Estate is backed by strong volumes in cash markets segment and significant unwinding in F&O segment. This suggests that if market continues to move down or flat, Indiabulls Real Estate may underperform. Hence we are generating a pair trade by buying DLF and selling Indiabulls Real Estate at current market price."
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