RCom can move down to test the lows of 81: Rajat Bose

Rajat Bose, rajatkbose.com, in a chat with ET Now talks about RCom and ADAG stocks.

What is your take on the ADAG basket?

They are news sensitive. But if you look at a stock like RCom, this stock has produced a double top formation that has been broken. If you look at the price that it can hit because of the double top breakdown projection, it can actually move down to test the lows of 81 that it posted few years back. Any rally or any recovery rally that happens, after sometime that would once again be taken as an opportunity to sell because the technical picture has become very weak and unless the overall market shows major turn or major reversal, ADAG stocks are very weak and they can remain in that weakness mode. Maybe the best case scenario for them would be a sideways movement.

Because they fell yesterday in a very big way that is the reason you have seen some good recovery in Reliance Infrastructure. But let this recovery sustain, follow on buying has to happen. Once that happens, then only we can expect sustainable recovery in any of these ADAG Group stocks. Otherwise, it would be futile to expect that they would immediately bounce back and move up.