See target of Rs 20 on IVRCL: Violet Arch Capital

According to Mithil Pradhan of Violet Arch Capital Advisors, IVRCL has a target of Rs 20, as it was creating a descending triangle pattern which is a bearish pattern, Pradhan added.

Pradhan told CNBC-TV18, “Infrastructure stocks or a lot of realty stocks never entered a bull phase in first place but now I see most of the sectors into a bull phase. They have moved above their individual make or break levels but not the infra stocks or the realty stocks. GMR Infra, about a couple of months back created a dangerous flag pattern which suggests that it will move to new lows.”
“A few weeks back it was creating a corrective pattern and I am sure it will make a new low. HDIL had brilliant make or break level at around Rs 88-89 levels that has been broken. I do no think HDIL is coming above that soon. If you look at IVRCL, while the market rallied about 25 percent IVRCL was creating a descending triangle pattern which is a bearish pattern,” Pradhan added.
Pradhan further said, “I do not want to scare investors but as far as that particular pattern suggest, I see a target of about Rs 20 on the stock. I have been studying a lot of infra stocks from shorting point of view, most of them are showing distribution patterns and a new low is on cards for all of these names.”