Short Sterlite Industries around Rs 110- 112: Pradhan

Mithil Pradhan, Violet Arch Capital Advisors advice traders to short Sterlite Industries around Rs 110- 112.

Pradhan told CNBC-TV18, “It’s a little too late to short metal stocks. Tata Steel is almost near the previous low, same goes with Hindalco, similarly goes with SAIL. I think Sterlite is one stock which I am very bearish on. I have been bearish on this stock for the last one week really and if you are fortunate to get about Rs 110-112 sorts of prices then I think you can enter short positions in this stock.”
He further added, “Metals index has actually cracked about 3% today and I think the opportunity for shorting is gone unless you are a momentum player which I am not. In that case you can look at other pockets like private banking stocks which are now getting weak, auto stocks if they fall little bit more from current levels then I think they will attract downside momentum. So these are the new sectors that you would like to participate as far as shorting is concerned which keeps your risk reward pretty favorable.”