Sell Federal Bank, Steel Authority of India: Mithil Pradhan

Mithil Pradhan of Violet Arc Global Managers told CNBC-TV18, "BSE metals index has given a breakdown yesterday itself from a triple bottom. Similarly Steel Authority of India Limited (SAIL) has given a breakdown from a descending triangle pattern. Historically descending triangle patterns are very dependable patterns for short selling. We are looking at a target of Rs 70. The momentum oscillators too are painting a very bearish picture overall."

"It is a very interesting set up that has occurred in Federal Bank. There is a wedge pattern breakdown. Wedge patterns are very bad patterns if a breakdown occurs below the pricing trend line. I am expecting the stock to move towards at least Rs 110 area but then historically wedges, when they break down they create much sharper moves and take the price much ahead of the the breaking point," he added.