Sell REC June futs below Rs 220; target Rs 208: IIFL

IIFL's research report on Rural Electrification Corporation (REC)

"REC closed below the neckline of head of shoulder top and move below Rs220 should aggravate the selling pressure in the near term. The implication of a bearish head & shoulder pattern projects medium term target of Rs205. Also stock has confirmed trend reversal on the long term charts, after closing below its 200-DMA for a second consecutive trading session. The daily RSI also has been trading below the support of 50 and is heading lower. The risk reward ratio for initiating short positions from current levels remains favorable. (Duration 5 days)," says IIFL research report.

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