Short ONGC, expect 5% dip in Coal India: Amit Harchekar

Amit Harchekar of A Plus Analytics told CNBC-TV18, "The PSU index is again forming a bearish pattern and we believe there is high possibility of that index falling by 5 percent. Major heavyweights in this PSU index are Oil and Natural Gas Corporation (ONGC) and Coal India. ONGC is forming a double top pattern on the daily charts and looking at the way the breakout had happened, we are expecting a retracement towards Rs 235-240 zone. So, from a short-term perspective we would recommend going short at these levels. Maintain a stop loss of Rs 266 which turns out to be intermediate top and play for a downward retracement.""Since we are expecting dollar to rally globally, it would have a negative impact on most of the commodity stocks. We are expecting a decline in Coal India even from these levels. Major resistance in the stock is seen between the zone of Rs 345 and Rs 350, the stock is unable to sustain that even on a weekly basis. So we are expecting a dip of at least of 5 percent in Coal India," he said.