Avoid GAIL, ONGC: Sukhani

Sudarshan Sukhani, s2analytics.com advises traders to avoid GAIL and ONGC as they both have rallied a lot.

Sukhani told CNBC-TV18, “Gas Authority of India Limited (GAIL) reached almost Rs 400; a little shy of that and that was a strong resistance level. It has rallied, it has done its bit and I have already explained that like Oil and Natural Gas Corporation (ONGC) has also touched its target, Reliance Industries has done it the Oil Marketing Companies (OMCs) in any case are very volatile and untradeable in general.”
He further added, “This entire sector has contributed to the Nifty’s rally is not likely not only to underperform but also cause pain and anguish to traders. So this is best avoided. When the Nifty goes in a trading range a whole lot of stocks and structures do the same and trading opportunities dissipate.”