Enter PFC, REC at lower levels: SP Tulsian

SP Tulsian, sptulsian.com advice traders to enter in PFC and REC at lower levels.

Tulsian told CNBC-TV18, “Overall, the positive view is maintained on power sector because if you see the dedicated financing companies to power sector both being PFC and REC, but as you have rightly said that this – because the stock has seen such a huge run up so profit booking is obvious that that will come at these levels and that is what we have been seeing.”
He further added, “One can look for the upward momentum once the stock corrects maybe by additional 2-3 percent. But this view can only be taken for a limited one-week period because I don’t think that the theme or the flavor of this discom restructuring can really last for a longer time because market is very dynamic. They keep looking for the new ideas, new stocks and the same thing is happening with the PSU banking stocks also- having run up some of them like PNB, Canara Bank having run up by about 30-40 percent in the last maybe 20 days or so. Now we are seeing them either stagnant or maybe the profit-booking coming in and again the focus is shifting back. So things keep happening over a one-week horizon or so. So, I will keep my positive stance on PFC and REC maybe for whole of this week and maybe a further correction of couple of points can make a good entry point in the stock again at the lower levels.”