Sell IRB Infrastructure, Dena Bank, Raymond: Jain

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

One may sell IRB Infrastructure. This stock was having a resistance plateau of Rs 115-120 zone. Once that zone was breached the stock is showing tremendous weakness. The stock is already trading at multiple year lows and below Rs 103, the fall could be very rigorous and very fast. Taking the kind of activity, negative divergence and negative momentum that was seen in the stock yesterday. I feel that carry forward negative momentum shift should spill over in today's trading and taking that into consideration we have gone short in the stock.

One may sell Dena Bank. What we have seen is most of these midcap public sector undertakings (PSU) banks, they have been performing very poorly for the last couple of days and generally they have been performing poorly for the last two-three months. Just in between they had a small bit of short covering when they gave dividend. Most of these stocks have given good dividend yield and even Dena Bank gave dividend of about Rs 4.70 a share just a couple of days back. Once the stock went ex-dividend the selling has aggressively started again and we believe that going forward the performance of most of these PSU banks should be poor.

One may sell Raymond. This stock has done very poorly in the last couple of months. The performance of the company for the last three quarters have been pretty lethargic and there is nothing solidly to look forward to in the performance. We do not expect any substantial improvement in performance. Technically the stock is looking very weak, it is trading at new lows everyday. We believe the stock could go further down, could lose another 5-7 percent in the next couple of days.

One may sell Jaiprakash Power. This stock gave a very poor performance yesterday and the news that two of its major plants have been affected pretty badly by Uttarakhand disaster, which does not auger well for the company. The stock is already trading at life-time lows and most of these JP stocks were facing the heat. I believe the negative momentum that was seen around most of the Jaiprakash Group stocks is not over yet and we could see the stock is heading much below the current trading price.