Buy Dr Reddys Labs; sell Lupin: Sukhani

Sukhani told CNBC-TV18, “Pharma is probably a sector that is going through a correction in this year, 2013 in the most part of 2013. That is the broader outlook. For a shorter-term outlook, we have to say that this stock is correcting and this one is not. In pharma we can distinguish and look for strength somewhere. That strength is coming in Dr Reddy whenever this small dip ends, that is a buying opportunity."

He further added, “ Lupin on the other hand is probably looking for a deeper decline so we divide it into two parts, pharma as a sector is probably now looking soft and beginning a process of distribution. Within pharma in the short-term for today I would be a buyer in Dr Reddy at some point and a seller in Lupin.”