Sell JM Financial, target Rs 32, stop loss Rs 44: Mithil Pradhan

In a chat with ET Now, Mithil Pradhan, market analyst, talks about the outlook of JM Financial.

Would you like to buy JM Financial if you got an entry chance in trade tomorrow?

Probably yes, if the level of Rs 40 has been taken out. If you look at the stock's history, it was into a downtrend. Initially, it was taking support at Rs 40 levels, it broke Rs 40 levels, and then went down much below. It came down to about Rs 32 odd levels and today with a 20% up move, it has taken out an important pivot which was based around Rs 38 levels. The next pivot that I am looking at is about Rs 40, I am not sure whether I would be able to get a chance to get into the stock. If the Rs 40 level is not crossed, the stock might again take a detour on the downside and might touch about Rs 32 levels again. Tomorrow or day after I will look whether it crosses Rs 40 or not and then take a call on the stock.