Sell Jubilant Foodworks; buy LIC Housing Fin: Sukhani

Sukhani told CNBC-TV18, “I have been bearish earlier and have been proved completely wrong. on Jubilant Foodworks is making distribution patterns that I sense are in the same form as Cummins. But trade is to be short. If this is a risk on environment, in spite of all the mess we are seeing in the world, talking about India, then a lot of FMCG, pharma stocks are going to under perform. It seems that Jubilant could eventually under perform and go down to a deep correction. The charts suggest that the down trend which has just started could accentuate, so we will go short here."

He further added, “ LIC Housing Finance is an excellent stock. The stock never fell below Rs 200-210, which the support level it made and it has been consistently staying far above it. There is a pattern that breaks out and takes it into new highs for this uptrend. I think that will come about, whether it comes now or later. For position trade, investors, it’s a good stock to be in. Yesterday there were suggestions that this stock is willing to break on the upside but today things will not be the same. But in spite of the opening weakness, I would say watch LIC Housing and if the Nifty stabilises, it is a perfect candidate to buy.”