Sell Indian Bank, Educomp Solution: Sukhani

Sell Indian Bank and Educomp Solution, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "All PSU have cracked miserably, so it’s a question which one could go lower today and even in a rallying market PSU banks are going to underperformers. If there is a small rally in PSU banks we want to go short in that. Indian Bank qualifies as one of the shorting candidate because it has been an underperformer. It had a trading range and broke down. It saw serious cuts on Friday and that should continue. So a rally is a better position to sell."
He further added, "Educomp Solution was a sell when it broke down from an earlier trading range below Rs 190; the Rs 200-180 band was resistance. We explained that this is a distribution going on. It has come to Rs 150. I think Educomp continues to be a sell till it reaches Rs 125 lows which it had made earlier."
"There are some stocks which are not doing well in this market. Educomp qualifies as one of them. So every opportunity and the sense is that this market is now disturbingly on the downside. So we have to search for short selling candidates always, even in a rally."
Disclosure: I have no holdings in the above stocks.