Buy Zee Entertainment: Sudarshan Sukhani

Buy Zee Entertainment Enterprises on dips, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "JSPL is the weakest of the metal stocks. Perhaps metals are now getting divided in two parts, the stronger ones like Steel Authority of India (SAIL), Hindalco and the weaker ones like JSPL."
He further added, "JSPL has made a double top. It is on the verge of confirming it. It has not done that, but yesterday’s very big decline says that it could easily do it. So there is a small risk here, but if it does confirm a bearish pattern then much more downside is possible. Just like in banks we are having Public Sector Undertakings (PSU) and private sector banks, we could have two groups in the metals business - companies that are doing well and companies where the stock prices start falling. JSPL would qualify in the falling category."
"Zee Entertainment Enterprises keeps going up. It is making a channel. The channel has a resistance and a support level. So it has now fallen to the support. Normally on a technical chart support levels should hold, especially for a strong stock like Zee. So this is a buy on dips opportunity."
"If it does not hold that would be the case if the Nifty were to sort of give way. In that case of course there will be problems elsewhere also and we will get stopped out. Otherwise we are buying on a small dip at the perfect support location." Disclosure: I have no holding in the stocks discussed.