Buy Axis Bank, Dr Reddy Labs: Sukhani

Sukhani told CNBC-TV18, “ Axis Bank is the least favourite for the reason that it’s not build any kind of base, it just did a small V-shaped rally because banks suddenly turned up. But among the other banks like ICICI Bank and State Bank of India Axis Bank has the potential of giving better returns on the day trade so there is a case for buying here. If the bank index doesn’t start to rally then traders can not take this trade. But if it does then among the banks Axis Bank would be more suitable for the day.”

He further added, “ Dr Reddys Laboratories is a far better chart. It went through a correction. It came to Rs 1,620-1,630 where lot of support exists. A stock that is in an uptrend comes down to a level where support exists and then starts bouncing back which is what it did yesterday after staying at that support level and tells that new highs in Dr. Reddy’s Laboratories may not be unusual. This is a better chart to go long in. the difference is that it is not necessarily a day trade because the stock itself is not an active mover everyday but there will be gaps in favour. This is a low risk buying opportunity.”