Short Apollo Tyres, says Sudarshan Sukhani

Short Apollo Tyres, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Apollo Tyres - we were bullish on and upbeat and we thought that a deep correction is finishing. The exact reverse has happened. The trading range that should have acted as support and as a bouncing pad has broken down yesterday telling us that this was not a correction, we are now in some kind of an ongoing bear market for Apollo Tyres. It is a little surprising but that is the way the charts tell us. It is a short sell now and probably a positional short sell also."
He further added, "Bata India was declining. After the decline stemmed, the idea was that the rally would continue but it has made a very unfair pattern – I would say unfair to me – bearish flag that tells us that significantly more downside is coming. So we are no longer are upbeat on Bata."
"The idea is to go and short sell it because there is much more downside. It is probably more than Rs 700, somewhere around Rs 700, so Rs 150 points lower than where it is now. I would still qualify it as a deep correction but it is a tradeable correction on the downside."