Sell LIC Housing; buy Crompton Greaves: Mithil Pradhan

Mithil Pradhan of Violet Arc Global Managers told CNBC-TV18, "In LIC Housing Finance Rs 492 or about Rs 505 is a zone of major resistance where the stock is stopping out and is sent back lower from this area. So, my suggestion is that one should look at selling LIC Housing Finance at this particular levels. Stoploss should be kept above the previous of Rs 503. So, you can keep a stoploss at about Rs 504-505 and the downside can be expected because this stock has been bouncing between support and resistance levels. Now the support is coming near the Rs 450-464 kind of zone. So, that is where you should look for cutting the stock back."He further added, "I have a buy call on Crompton Greaves because of the fact that while capital goods as an index has entered a bear market and it is very weak, Crompton Greaves has been trading in a sideways zone and is showing relative outperformance compared to other capital goods stock. Now, this is a very short term trade.""I am looking at a stoploss of about Rs 189 on the downside and I am expecting the stock to go to about Rs 203 or Rs 204 levels primarily because of the fact that a sideways pattern has been taken out today morning in the stocks. So, there can be a short term rally which the traders can play out," he said.