May 07, 2012 12:13 PM IST | Source: CNBC-TV18

Sell ITC, says Sudarshan Sukhani

Sell ITC, says Sudarshan Sukhani of

Sell ITC, says Sudarshan Sukhani of

Sukhani told CNBC-TV18, "ITC has been an outperformer. One knows why, the fast moving consumer goods (FMCG) stocks are preferred when markets are in difficulty. But that seems to be over. I would assume that ITC is on the verge of a breakdown. If the market starts begin to stem this decline, consolidate, I am not talking about going up, then ITC will be an underperformer and look to a deep correction. So, ITC is a short sell. It’s probably relatively safe short sell even this morning."

He further added, "Cipla is very strong apart from the fact that it gained for all the five days. It fell to Rs 287, completed its bear market or a deep correction or a downtrend then it’s been consolidating. It’s consolidated, made fairly bullish head and shoulder pattern and it’s now coming out of it, it’s not broken out. So Cipla should be a buy, it’s been in my buy list in the last week also, so it must be in our buy list."

"We will try to buy it today if there is a decline, a gap down and that’s a very good reason to go long in Cipla because we are getting something that’s likely to move up and we will get it today at a lower price. So, Cipla is my number one pick on the long side."

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