Sell UPL Aug Futures, Biocon, Godrej Industries: IIFL

Pritesh Mehta of IIFL told CNBC-TV18, "First recommendation is sell on UPL August Futures. The stock had been one of our favourite picks for quite a while but it is unfortunate that the bullish consolidation uptrend that we had been talking about has come to an end. The stock for last 10 weeks had been consolidating, moving in rectangular pattern at top. However this consolidation has eventually broken downside which means the selling pressure is going to intensify. We can see more extension on the downside going forward in UPL. So, sell for a target of Rs 475." "Second recommendation is sell on Biocon. It is a classic case of a false breakout. The stock, at the start of last week had given a breakout from a triangle pattern. It made a peak of Rs 485 but failed to sustain the top and thereafter made a hammer pattern which meant that the short-term rally which had seen, came to an end. Infact the stock started to drift lower and eventually it broke the triangle pattern on the downside. Whenever bullish pattern is violated, the implication of the same tends to be extremely bearish in nature," he said."Third recommendation is sell on Godrej Industries. The stock has formed a double bottom and had given a break below the neckline. In the process it has given break below its multiple support levels around Rs 370. Also we can see that this support was intact for last three months. So, in the process it has also given a break below its 100 day moving average which falls in place since June 2015. So, selling pressure count is going to intensify going forward. So, sell Godrej Industries for target of Rs 330," he added. Disclosure: Analyst may have recommended to his clients but has no personal holdings.