Prakash Industries showing strong downtrend: Shardul Kulkarni

In a chat with ET Now, Shardul Kulkarni, Sr Technical Analyst, Angel Broking, spoke on Prakash Industries and Hindustan Construction company.

A word on couple of these stocks which have shown a bounce back today Prakash Industries and Hindustan Construction company, on the charts is this bounce back sustainable?

I will first look at Prakash Industries if you actually look at the chart the stock has fallen off probably around 150 to around 100. So around 40%-45% fall after which you are seeing a 10% bounce. I do not see that this bounce will be sustainable. The stock should move into a higher top, higher bottom only after which you can say that okay there is a probability of rise. Right now what you are seeing is it’s a corrective move in a downward impulsive trend so yes it can extend up to 120-125 wherein again I would expect selling pressure for Prakash. HCC also shows you similar trend. It is a clear downtrend I would yes expect a bounce probably up to 46-47 but again I would expect selling pressure again to emerge at those levels and for the short positions to be built up at higher levels because it is a strong downward trend which is evident on weekly, monthly and even the daily charts.