'Sell both Reliance Comm and Reliance Capital'

In a chat with ET Now, Mithil Pradhan, Market Analyst, talks about the outlook of Reliance Communication and Reliance Capital.

Do you think the upside in Reliance Communications and Reliance Capital is sustainable?

I am not bulling on any telecom stocks. Reliance Communications belongs to a sector which is underperforming. I do not think an investor would like to get into such a sector which is already underperforming. The news is out. Most of the Reliance Group stocks are outperforming in today's market. Ideally, if you are trading Reliance Communications, you should wait for one or two days, let the optimism dissipate, take a short position on it.

If you were to initiate a trade on Reliance Communications and Reliance Capital, what would you go for - hold, buy, sell?

I would go for a sell call on both stocks.