Buy REC on dips, says Sukhani

Buy Rural Electrification Corporation (REC) on dips, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, The Nifty itself has made some kind of a higher low pattern, it’s not yet confirmed. Individual stocks naturally are following that same pattern and made higher lows after having gone through a very sharp correction earlier. Century Textile has done that. So I am assuming that this higher low pattern will remain, that the correction is over and yesterday’s big move in Century tells us that the eventual uptrend will resume. It’s on that basis that we should be buying it. As we will apply to most stocks keep a stop loss, because if the Nifty turns around and falls these stocks would not be outperformers."
He further added, "REC is good for more and much better chart. REC and PFC have completed their bear markets and they are on the way to making significant gains and the gains won’t come in one day. After REC’s big move yesterday we could see a choppy day today or a couple of days, even next week. But these dips have to be bought; the charts are excellent."