Sudarshan Sukhani cherry picks stocks to trade today

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Below is the edited transcript of Sukhani's interview with CNBC-TV18.

Q: You have a buy on HDFC Bank ?

A: HDFC Bank is now in a trading range as is the Nifty, but the stock itself suggests that even the slightest upmove in the main index could push it into new highs. This trade needs to be taken in context because if the market slides, I do not think it will, but if it does, then HDFC Bank is not a buy.

But if the market stays steady then rather than trading the Nifty or in addition to the Nifty, the bank itself is an excellent buying opportunity, it will give you more beta than the index.

Q: Take us through why you do not like the charts of Voltas ?

A: After the support at Rs 100 and a rally towards Rs 130, Voltas has now been giving something that was earlier thought of as a distribution and is now confirmed as a distribution pattern giving us back a target of Rs 100 all the way down. Earlier, it made a small bearish head and shoulder.

Yesterday, it broke down from an additional support level. So, it was a sell already. That sell has been confirmed yesterday and for whatever reasons it may be the stock is moving back towards Rs 100.

Q: LIC Housing Finance is a better looking chart?

A: It’s certainly a better looking opportunity in the sense that LIC Housing has slid from Rs 280 to Rs 240. So, a deep correction has already happened. Otherwise, it is a good chart and a good blue chip stock. At Rs 240 LIC Housing has a lot of support. Yesterday, it gave the first sign that maybe it will react to support and stop there.

So, it’s a high risk trade because we are now buying almost at the lows so catching falling knives but catching falling knives for LIC Housing or for a blue chip company is different, it’s worth taking that chance. If it works out there is a very decent upmove again.

Q: What kind of a target would you place on Aurobindo Pharma ?

A: The targets for this are anything around Rs 180 or even higher. Aurobindo Pharma has been coming in our buy list repeatedly, almost every week. It rallied 60 percent but we cannot say this is it. The stock itself suggests that much more upside is possible here.

Yesterday, it broke out of a small trading range which lasted about two weeks. That breakout should take it with strong momentum on the upside. This is again a stock that’s likely to move up even if the main indices do nothing or go down.

Disclosure: No holding or interest in any of the stocks