REC can move to Rs 234-235: Manghnani

Rural Electrification Corporation (REC) can move to Rs 234-235, says Anil Manghnani, Modern Shares & Stock Brokers.

Manghnani told CNBC-TV18, "PTC India, REC and PFC are A group stocks that were quoting closer to Rs 400, 6-7 months back and the index is down 12% but these stocks have more than halved, Rs 170-180 is where PFC and REC respectively traded a month back. So I think yes oversold nature has created this bounce, may be REC can stretch a little bit more to about Rs 234-235 levels and PFC also may be Rs 226."

He further added, "I think they are in the initial stage of bottoming out but typically at least what happens after you have been battered so badly couple of months down the road you normally come and retest these levels. So it is a good trading bounce, but I think you will get one more opportunity, may be not back all the way to Rs 180 and Rs 170, but there will be a pullback whenever this rally ends and sometimes a couple of months down the road you will get another chance to enter. But it is encouraging signs, at least these sharp moves sort of give you some encouragement that may be the worst is over and the next fall can be bought, initially it was just a one way fall. Every time we try to buy the stock they just continue to make new lows. So this is a little bit of an encouragement and I think the next fall you will see a little more interest at least from traders."