Short Jubilant Foodworks, Gujarat Fluoro and Voltas, says Sudarshan Sukhani, s2analytics.com. Gujarat Fluorochemicals has been a shorting opportunity consistently. It was a momentum stock of yesteryears, but currently it has been falling steadily and rapidly. It has fallen from Rs 400 to Rs 240-250. Still, there is more downside here, he adds.
Sukhani told CNBC-TV18, “As the markets are in some kind of a short-term downtrend – there is no need to go and become brave and adventurous and try to buy, which is also a very reason, why we should focus mainly on shorting opportunities that gives us two advantages – first, we go with the flow of the market and second a big advantage. We don’t take buying positions where the chances of a loss are very strong. So, we avoid such positions.”
He further added, “With this background, we should start with Jubilant Foodworks. We have had a lot of drama in Jubilant Foodworks. First, it fell rapidly, then for two days it rallied and then it fell again. But the bigger picture outlook for the stock is that it has made a clear distribution pattern and it is looking for significantly lower levels. So, it would be a shorting opportunity for me.”
”Then we have Gujarat Fluorochemicals, it has been a shorting opportunity consistently. It was a momentum stock of yesteryears, but currently it has been falling steadily and rapidly. It has fallen from Rs 400 to Rs 240-250. Still, there is more downside here. So, it for short-term, for people who are willing to take short positions is a good idea.”
”The third is unfortunately, I say unfortunately because that stock I thought would work out. Voltas has been giving some impression of willing to breakout and then the results come and then the whole thing becomes a flop. It is not just the results, after the results, after news the stock has now been facing selling pressure – that tells us that the sellers are serious. We incline to look for lower levels. It has cracked Rs 100 and the chances are it will eventually reach Rs 90. So, Voltas is again a shorting idea. The basic idea as I have explained is - don’t buy in a falling market, look for these opportunities or stay away.”