Sell Dena Bank, Andhra Bank, Unitech: Pankaj Jain

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Sunteck Wealthmax shares his trading strategies for the day.

I have a sell call on Dena Bank. Midcap PSU banking space has been one area of weakness right throughout. Even in this rally, we have seen that this sector did not perform all that well. Dena Bank came out with very poor set of results, about 10 days back. Thereafter, the stock has been consistently falling down, Rs 85-85.50 is a very crucial level. Once those levels are breached, the stock could fall down in a serious fashion. I also have a sell call on Andhra Bank - again a midcap PSU bank. Results of this bank have also been poor for last two-three quarters and the stock is trading much below that support zone of Rs 88-89. It is almost in no support zone for next Rs 7-8. Again, the kind of negative aura which is surrounding most of these PSU banks and we believe that Bank Nifty could be underperformer even in today’s market, we have picked up Andhra Bank also as a short candidate for the day. I also recommend shorting Unitech. We have seen most of these real estate stocks especially the midcap real estate stocks going for a toss in yesterday’s trade. Unitech was one of them. Inspite of Unitech having lost about 10-11 percent in yesterday’s trading, the momentum Relative Strength Index (RSI) indicator seems to be very negative. Stock could fall further down to levels closer to Rs 23.50. The kind of headwinds market is facing now because of global correction could make the fall faster. I maintain my shorting call on India Cement. We have seen that in last two-three days, the fall has been very furious and the volumes have been very strong and the catalyst for this fall has definitely been the sort of IPL spot fixing controversy which is hitting the doors of management of this company.