Jan 02, 2013, 10.38 AM | Source: CNBC-TV18
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Pantaloon Retail. Today the breakout is imminent. It has already started that yesterday and will build onto it.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Sukhani told CNBC-TV18, "Pantaloon Retail was a disappointment for so many months and years and now once it crossed Rs 200, made the right chart patterns; it is embarking on its own bull market. Currently after a big rally Pantaloon was in a trading range. It is now breaking out. It is a momentum stock, high beta play and a stock that has built a base and is now coming out of it. So in all aspects it qualifies as a buying opportunity."
He further added, "Today we buy it because the breakout is imminent. It has already started that yesterday and I am assuming it will build onto it. Once a stock breaks out there is a strong momentum on the upside till it begins another new range. That could take sometime."
" Rural Electrification Corporation (REC) made a trading range. It is on the verge of a breakout. It actually closed higher than the resistance levels yesterday and that tells us that the same story as in Pantaloon - big rally, trading range as was in the Nifty. The Nifty broke out yesterday and naturally some stocks will follow on the subsequent days, which is what is likely to happen today, so REC is an excellent play."
"The stock chart was very good, built a base and came out of it and today specifically I think intraday traders should focus on this stock and if it closes strong, carry it. There is a big move upcoming here."