Time to book some profit in REC, PFC; 2 stocks to buy at current level: CA Rudramurthy BV

economictimes.indiatimes.com:

CA Rudramurthy BV, Founder, Vachana Investments, says “I feel personally that in railways, power, the big move has already happened. I would definitely suggest at least partial profit booking, if not full profit booking and no shorting any of these counters whatsoever. But you have to find good stocks like Power Finance Corporation, REC which were all very good at 120, 130 levels but not so after 150% up move. I will be cautious in these areas and I will book profit.”

Right now, are you bullish or cautious?
Definitely cautious because we have already seen a very swift move from 19,200 to now levels closer to 20,000. No doubt at index level still, we might be left out with some more steam but I do not want to play the last 5-10% kind of a move on index on the long side. Rather, it is better to be cautious but I do not suggest you any shorting because I do not find any trigger for the market to come down.

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We need a trigger just because valuations are expensive or just because we are expecting inflation and yields which are at higher levels to just further continue up. This cannot be a reason for a short term down move. I do not know what the trigger can be. Is it crude oil prices moving up? Is it something to do with the Fed in terms of interest rate? I do not know but let us wait for the trigger before we go short.
But I am very cautious on the market, especially on mid and smallcaps. But however, you have specific ideas where you have to remain long and wait for the market to