See downside in Century Textiles: Sukhani

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See downside in Century Textiles: Sukhani

Sudarshan Sukhani of s2analytics.com feels that there is more downside in Century Textiles.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Century See messages about Century

Sudarshan Sukhani of s2analytics.com feels that there is more downside in Century Textiles .

Sukhani told CNBC-TV18, " ITC has just broken out of Rs 208-209 trading area where it was finding repeated resistance. In fact four or five occasions that acted as resistance and ITC did not participate in this entire rally. When the Nifty went up 1,000 points, ITC was completely sideways locked in a 20 point range."

He further added, "In a sideways market, defensives can do well, but apart from that on the charts itself ITC's participation in the rally is probably now coming into force. So, here is a stock that broke out yesterday from a long resistance zone. It's a blue chip in its own and the markets are probably conducive today. So ITC is probably a position trade as well as a day trade."

"I am cautious on Century Textiles because the rally was very steep, not because Century itself is in a bear market that's not the case. Unlike VIP, Century is okay, but these steep rallies have to get corrected. That's what was happening for the last three days and there was a lot of warning that this is not sustainable, stay away. So this is not surprising."

"Century's correction is probably not over. That's going to happen to a lot more of these midcap stocks which have jumped a 100%. So Century has more downside. We are trading a correction here. We are not trading a downtrend. That the viewers must understand. There is a qualitative difference. But for a short-term trader it makes no difference in the sense that I expect it to come down further. For Century if the intraday strength suddenly emerges it's wise to avoid it, otherwise there is a short trade here."