Sudarshan Sukhani, s2analytics.com advised selling Petronet LNG and Union Bank of India on rallies.
Sukhani told CNBC-TV18, “Actually one of the nice things about today (Friday) or about this market is that the midcaps have been beaten down so badly that they cannot be shorted anymore unless they go up. So that is one big relief that we cannot sell most of them, but there are still some selling opportunities.”
He further said, “We have Petronet LNG. It is in a downtrend. It saw a three day rally. So we would like to sell into strength and that is the small strength that we are looking for to sell Petronet. Petronet is a short sell and so also is Union Bank. Union Bank was battered after bad results. It saw a consolidation, a small two-day rally. That rally is good enough to be sold into.”
“So the idea is to sell weak stocks which have seen small rallies and buy the strong ones. That is the way I would approach the market next week,” Sukhani added.
Petronet LNG declined 1.09 percent to close at Rs 149.40 on Bombay Stock Exchange on Friday. In last three months, the stock lost 7 percent.
Meanwhile, Union Bank of India slipped 0.43 percent to end at Rs 231.20. In last one month, shares tanked 14 percent.