Short Reliance Power, JP Associates: JK Jain

JK Jain of Karvy Stock Broking told CNBC-TV18, "If you look at stocks like Reliance Power, Unitech, Reliance Communications, they have hammered down last week when the market saw significant volatilities. Most of the high betas have seen significant cut of 8-10 percent last week."

He further added, "Overall if you look at in the last two trading sessions' bounce this stock hasn't participated significantly. These stocks have just seen a mere 1-2 percent bounce. So it clearly indicates that these stocks are seeing significant pressures. Most of the high beta stocks we expect short positions can be buildup in the June series in these stocks."
"If at all one doesn't want to take risk one can go and buy at the money (ATM) puts, the implied volatility of these Options are also on lower side. So one can buy ATM puts of these stocks. Even Reliance Power, Jaiprakash Associates, most of these stocks we can see the selling pressure to continue in them. The stock could see another 8-10 percent cut in June series as well. So one can buildup short positions or buy ATM puts in these stocks," Jain said.