REC, PFC & IndiGo: Here's what Rajesh Palviya of Axis Securities says on these 3 stocks

Rajesh Palviya, Head of Technical Research at Axis Securities, on Thursday, shared his views on select stocks such as REC Ltd, Power Finance Corporation (PFC) Ltd and Interglobe Aviation Ltd (IndiGo's parent).

"REC and PFC have moved up after a correction. REC has the potential to continue its upward momentum to Rs 655-600 levels. So, one can hold their positions in REC with a stop loss of Rs 620," the market expert told Business Today TV.

REC Power Development & Consultancy Ltd (RECPDCL), a wholly-owned subsidiary of REC, sold its Bhadla-III Power Transmission Ltd to Power Grid Corporation of India Ltd. REC shares were last seen trading 0.93 per cent up at Rs 624.35.

For PFC, Palviya said, "The stock can rise further to hit Rs 560-565. Keep a stop loss placed at Rs 540 for this trade." PFC was up 1.64 per cent at Rs 547.90.

When asked about IndiGo, the market specialist said, "The counter has support around the Rs 4,700-4,650 zone. Till these levels are intact, then we can see positional targets of Rs 5,000-5,200 in the near-term." IndiGo shares were down 1.75 per cent to trade at Rs 4,774.35. The stock saw heavy trading volumes amid reports of a block deal by co-founder Rakesh Gangwal and Chinkerpoo Family Trust.

Gangwal's stake sale is aligned with a broader guidance of gradually reducing his holding in the budget carrier.

Meanwhile, Indian equity benchmarks saw a sharp uptick in the afternoon trading session to scale their all-time high levels. The domestic benchmarks surged today, led by gains in banks, financials, IT and FMCG counters. However, broader markets (mid- and small-cap shares) were also down.

Seven out of the 16 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty Financial Services, Nifty IT and Nifty FMCG were outperforming the NSE platform by rising as much as 0.37 per cent, 0.65 per cent, 0.57 per cent and 0.84 per cent, respectively. However, Nifty Auto and Nifty Metal slipped 0.50 per cent and 0.67 per cent.

The overall market breadth was weak as 2,474 shares were declining and 1,333 were advancing on BSE.