Time to lock profits in RailTel, IRFC and IRCTC as charts looking overbought: Aditya Arora

Aditya Arora of Adlytick, said “in buzzing stocks like RailTel, IRFC and IRCTC, the market has priced in more than there is on the table. So, they seem pretty overvalued, overstretched, and charts are looking pretty overbought. It is a good time to lock the profits wherein people had invested previously at lower levels. Now, it is time to take chips off the table because correction is very likely in these counters.”


Let us talk about the PSUs. Actually, all these public sector entities, whether you look at a RailTel, RVNL, IRCTC, Tourism Finance, IRFC, all of them are buzzing in trade and the run up that we have seen in these stocks, even in just the last five days, is something that one cannot fathom. What are the charts looking like for any of these names?
Aditya Arora: There is good news to back that up as you said RailTel, IRFC, IRCTC, everything is buzzing away. But I think the market has priced in more than there is on the table. So, they seem pretty overvalued, overstretched, and charts are looking pretty overbought. It is a good time to lock the profits wherein people had invested previously at lower levels. Now, it is time to take chips off the table because I think correction is very likely in these counters.


Let us also talk about something like PVR-Inox, that is too buzzing away in trade. On the charts, anything looking technically exciting for PVR-Inox?
Aditya Arora: Yes, PVR has corrected significantly from Rs 1815 to Rs 1500 kind of level. At these levels, one can take a bullish bet, keeping stop loss at 1450, and target should be 1580 to 1600. It is a rebound trade. Stock may not outperform, but it could be a good rebound trade.

Any specific midcap, smallcap name that would be looking attractive to you on that side or should one keep an eye out on that one?
Aditya Arora: The technology sector is one such sector wherein there is a lot of steam left. So, Mphasis is one such candidate where probably there is more steam left. So, Mphasis is a buy at Rs 2,600 and stop loss is Rs 2550 and targets are Rs 2700.

What are your top picks that you would like to give today as well?
Aditya Arora: My top picks include Mphasis and the second one would be from the pharma pack. As you might have seen, pharma has been outperforming since some time and that outperformance may continue. Torrent Pharma is buy at Rs 2523, stop loss is Rs 2420 and target is Rs 2600-2700.

We were talking earlier about SIS as well. Today, because of the securities that they will be handling in Ayodhya, we have seen a run-up coming in. Would you say that there is still some room left for an upside for any of these stocks whether an SIS or a Praveg and would you look to enter any of these names?
Aditya Arora: Yes, SIS looks good, as you rightly pointed out. There is a lot of news backing that. So, SIS is a buy at Rs 530, Rs 470 stop loss and target is Rs 580 to 600.

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