Buy State Bank of India (SBI) and Sun TV at current levels, says Sudarshan Sukhani, s2analytics.com.
Sukhani told CNBC-TV18, "State Bank of India (SBI) is a falling knife straight because it has been a distinct underperformer. The reason I am looking to buy it today is for the last four days it is in a very narrow tight band, a narrow trading range. Normally good stocks when they go into a narrow range are eventually going to breakout one way or the other. Since my own sense is that we are looking at some kind of a small rally, the breakout in State Bank should be on the upside. So if I am going long today, I am probably buying almost at the breakout point which is the low also of the current move. It's a good trade on the long side."
He further added, "Sun TV is a buy. I have been upbeat on Sun TV when it has been in this range of Rs 250-300. Now there are two opportunities in Sun TV. First, yesterday was a good day for it. It closed higher. Now there is an approach rally towards Rs 300 - that's the first method that we have here in Sun TV. The second target for Sun TV is when it crosses Rs 300. That's when it goes through a significant breakout and goes into an intermediate uptrend. So traders can go and buy it now, look for a target of Rs 300, exit partially. Then if it crosses Rs 300 actually convert it into a position trade. So there are two opportunities here."
