RCF and STC rally not confidence inspiring: Deepak Mohoni

Deepak Mohoni, director, trendwatchindia.com, in a chat with ET Now talks about RCF and STC.

What is your take on RCF and STC?

They are making very sharp moves on the upside. But what’s got to be kept in mind is that these stocks had fallen 30-40% when the bubble burst on these PSU stocks a couple of months back. Now we are seeing them rallying. So it is not a hugely confidence inspiring rally for the long term because you could see some more declines of this sort later. But while the going is good, may be a two or three day perspective, this is a move that could be availed of. But I would not add these to a long-term portfolio at all. The unknown and the downside risk is much too high over here.