Buy Tata Chemicals on dips: Sukhani

Sukhani told CNBC-TV18, " Bombay Dyeing had fallen on news, from Rs 550 it fell to Rs 380. It has now begun a rally again, so it’s possible that the decline was a correction and I think it was an ongoing bull market for Bombay Dyeing. The short-term trend is up and as it moves above the levels of Rs 530-540 the chances are that it will change the trend on the intermediate term. Yesterday was a good day for Bombay Dyeing and there is some sense in buying it. If this market opens with a lower gap one has to be patient to get these longs in. But that opportunity should come during the day."

He further added, "Tata Chemicals is more of a buy on anticipated reversal. It has been falling consistently and now it has stopped the decline. It has been making some narrow range pattern since last three days, which suggests upside momentum is likely to begin. If one do get into Tata Chemicals one is buying almost at lows. So with a small risk it is a buy. It is not high volatility or actively traded stock. It’s more of a positional or swing trade rather than just a day trade."

Disclosure: I have no personal holdings in the stocks discussed.