Reliance Capital sees good prospects; Piramal may give positive returns: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com in an interview with ET Now talks about Reliance Capital and Piramal Healthcare.

You like a Reliance Capital. You have got a buy call on that one and a short call on Piramal Healthcare? Reliance Capital, it has already run up too much at this point would it be a slight particular risk to enter?

Its as much risk as any other stock really. As long as the markets intermediate up trend is up the stock should do pretty well. It is unlikely to reverse while the market is going up. So in that situation its best to pick momentum and that stock have got momentum. So Reliance Capital and its is finishing fairly firm today so that's looking like a good prospect over the next few days.

You also chosen to go short on Piramal Healthcare what are you seeing on the charts?

Well first off all the long term trend in the stock is not bad. Its only recently made an all time high and has been falling since then but this particular fall has been fairly severe and come from a high volatility situation news driven at that time. The selling has still not stopped in the stock.

Also this rally is not doing much for pharmaceutical so the sector is not going to come to its rescue so after a market being running up for 6 days its good to look for one or two short term shorting ideas and that's where this rally fits in. Its not something to may be get rid off from a portfolio but over the next couple of sessions it might give positive returns by going short.