Buy Dr Reddys Lab, says Sukhani

Sukhani told CNBC-TV18, "The banks are now getting divided in two parts and surprisingly the PSU banks continue to languish. Private sector banks are going through a correction just like the Nifty, which I assume is doing, so at some point they will stop falling."

He further added, "Axis Bank has well bounded zones for support and resistance. It is standing right at support. So, if the Bank Nifty is willing to go up, Axis Bank should bounce from here. This is a high risk trade because we are buying at the lower ends assuming that support will hold. But if the support holds then we will have a handsome rally, at least 4-5% in this stock. The same applies to ICICI Bank although Axis Bank in terms of rewards was more interesting today."

"Dr Reddys Laboratories stopped falling yesterday and that tells us the decline we saw for 4-5 days was just a correction in an ongoing uptrend. In between DRL had broken out of a bullish basing pattern, it is already on a roll then it went and consolidated and broke out on the upside."

"That break out was interrupted as it started falling for four days continuously, that decline seems to have ended. If that is so, then we are buying almost at the point where it should renew its advance. It is also a blue chip; it is in the right sector. It is a perfect buying opportunity for today. If the Nifty is to go up then DRL should be one of the leaders."