May 07, 2012, 12.13 PM | Source: CNBC-TV18
Sell ITC, says Sudarshan Sukhani of s2analytics.com.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Sukhani told CNBC-TV18, "ITC has been an outperformer. One knows why, the fast moving consumer goods (FMCG) stocks are preferred when markets are in difficulty. But that seems to be over. I would assume that ITC is on the verge of a breakdown. If the market starts begin to stem this decline, consolidate, I am not talking about going up, then ITC will be an underperformer and look to a deep correction. So, ITC is a short sell. It’s probably relatively safe short sell even this morning."
He further added, " Cipla is very strong apart from the fact that it gained for all the five days. It fell to Rs 287, completed its bear market or a deep correction or a downtrend then it’s been consolidating. It’s consolidated, made fairly bullish head and shoulder pattern and it’s now coming out of it, it’s not broken out. So Cipla should be a buy, it’s been in my buy list in the last week also, so it must be in our buy list."
"We will try to buy it today if there is a decline, a gap down and that’s a very good reason to go long in Cipla because we are getting something that’s likely to move up and we will get it today at a lower price. So, Cipla is my number one pick on the long side."