Sell REC, says Sudarshan Sukhani

Sudarshan Sukhani of s2analytics.com is of the view that one can sell Rural Electrification Corporation (REC).

Sukhani told CNBC-TV18, "Idea remains a trade on the short side, although I would not take it because Friday’s price action suggested that maybe a short-term low is coming in place. We don’t know that, but it’s possible. So while the trend is down, the trade if at all needs to be taken on the short side. It’s probably better not to take it till either lows are broken again in which case go short or maybe a short rally could begin. That rally then needs to be sold into."
He further added, "REC is a big disappointment. REC and PFC both suggested that maybe their downtrends are over and they are moving up, but that has not worked out. It’s very difficult to trade in this kind of an environment where 5 point, 10 point moves are now becoming the trend. But REC is now a sell. Probably it needs to show some more weakness before that actual trade can be taken, but the view should be on the downside."