Short Ceat February fut, OBC, Indiabulls Housing: Amit Harchekar

Amit Harchekar of APLUS Analytics told CNBC-TV18, "First recommendation would be going short on Ceat February futures. The stock has already broken from the rectangular trading band and this breakdown has happened with a very high volumes. We believe that one can initiate short positions even at current level, maintain stop loss of Rs 895 and we are expecting it to move towards Rs 820.""Second trade would be going short on Oriental Bank of Commerce (OBC). We have already confirmed the start of a multi-decade bear market in public sector undertaking (PSU) banks and OBC is not an exception. So, we would recommend going short in OBC even at current level. Yesterday we had seen volume based selling on the delivery segment and we would recommend going short with a stop loss of Rs 85. We are expecting short term target of Rs 71," he added."Third trade would be going short on Indiabulls Housing Finance. This stock has already given a breakdown from a head and shoulder pattern and this indicates a lot of distribution has happened at higher levels. So, from a trading perspective one can keep a stop loss at Rs 630 and trade for a target of Rs 540. Our perception is that the long term bear market has started even in Nifty midcap index. Even in case there is a pull back in Nifty, we are likely to see underperformance from most of the midcap counters. So, it is three to five years bear market which is in place for midcaps. So, we would stay away from midcaps even on a short term rally."