Short Hindustan Petroleum, GMR Infra: Pankaj Jain

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

Pantaloon Retail had rallied very sharply from levels closer to Rs 152 level closer to Rs 200 on basis of news of FDI in multi brand retail. But with the kind of problems government is now facing and government in a political limbo we could see sharp correction in Pantaloon and in all these FDI related stocks. We had seen on Tuesday Pantaloon was already showing fatigue and bouts of profit booking could be seen in Pantaloon.
On basis of similar credentials even CESC had rallied from levels closer to Rs 290 levels closer to Rs 330 on basis of this FDI in multi brand news. Even this stock was showing signs of serious fatigue on Tuesday and stock could see sharp rally. We have been seeing that at levels closer to Rs 320. Generally this stock tends to correct from those kinds of levels.
Short Hindustan Petroleum, very poor technical stock. The stock is trading below all relevant averages and in spite of the kind of diesel hike which was announced the stock corrected very sharply. The oil marketing stocks could be one of the foremost casualties of what is happening on political front. The government may have to roll a bit of prices on diesel and not to forget because of whatever has happened in last two days any future rise or increase in petroleum products would be very difficult.
Short GMR Infra. These rate sensitives stocks, infra structure stocks rallied very sharply. GMR had rallied from levels closer to Rs 20 to levels closer to Rs 24. Even in infra in spite of many midcap stocks moving very aggressive on Tuesday GMR infra was already showing signs of fatigue and that sign of fatigue added with the kind of expected initial turmoil in the market. We could see sharper reaction in these kind of infra related stocks.