Short Raymond, says Sudarshan Sukhani

Short Raymond, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Central Bank of India has horrible chart. It went up first, then rallied and then started a decline almost after making new highs. Stocks that do this V-Shaped rallies and then turn down into inverted V’s, they are bad charts to buy but perfect charts to go short.”

He further added, “After falling for 10 days today it’s likely to open lower and that will be breakdown of a significant support level for Central Bank. Banks are doing unusual things, some banks are out performers and clearly will suggest buying once the decline stems. Some banks you cannot touch and Central Bank comes in that category."

"Raymond is a disappointment because the stock had a nice rally after an earlier decline but that rally immediately fizzled out at Rs 400. That was the earlier resistance, apparently the market refused to push up prices higher. Like Central Bank it immediately started a decline, which has brought it to Rs 375 although it is not in the same category because Raymond’s maybe going through a sharp correction and there is more downside here.”

“So for a short-term trader there is an opportunity to go short today, it’s likely to have a lot of follow through on last week’s weakness and probably take some money out."