REC is looking weak: Sanjeev Agarwal

Are you tracking Fame India?

Yes, Fame India has been actually very bullish. Even before this news had come, it had been in accumulation zone for many months and something was cooking earlier itself. Now above 90 it should again move towards 120-130 kind of a band and 90 seems to be a very strong resistance.

Moreover, in the technical charts, it purely depends on how this corporate takeover battle pans out. How both the parties are bidding this stock up or down purely depends on that. In a stock which is actually locked in a 5% circuit for last five or last 10 days, there is hardly any analysis you can make on technicals.

REC and NMDC are on the FPO watch list. How are they both looking on the cash market run?

REC had very strong run in the last one year but now I think it’s looking little weak. The border line area where the trigger remains is around 230 till it closes above 230. I fear that this stock may bounce back towards 220-225 but ultimately it’s looking weak and its just support is around 200 DMA which is around just little lower than 200.

So I feel that this stock may remain in a range around 200 to 230 levels tills its FPO and after that it may actually go lower on that.