Sell RComm and buy NTPC: Devang Visaria

ET NOW Technical Check with Devang Visaria, Chief Strategist, Devangvisaria.com.

ET Now: One stock that you would watch out for at 9 a.m.?

Devang Visaria: I would sell RComm and buy NTPC, that is a good pair of trade that I would like to initiate today.

ET Now: Reliance Communications, a bit of a downtick, your target price is definitely lower, at this level; you go ahead and short it?

Devang Visaria: I would do a value neutral pair trade I would just be short RComm and buy NTPC on an equal value basis. So it would take care of the intraday market volatility which we expect to increase over the next few sessions and at the same time you would have a short position as well as a long position and long position is hopefully in the stock which is likely to outperform the market.

ET Now: One word on JP Associates, that stock has not gone anywhere. In fact post the numbers has only seen a steady downtrend. At the current levels, JP Associates, would you go ahead and buy it?

Devang Visaria: I do not think I would go and buy JP Associates at this level because the whole infra space is looking to under perform the market and I do not want to keep an underperformer for the next few session at least.

ET Now: Any disclosures?

Devang Visaria: Most of the stocks that we talked about have been recommended to our clients and we have a certain interest in that in the sense that clients would have a position there.