Short Godrej Industries: Sudarshan Sukhani

Short Godrej Industries, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "We should go short in Godrej Industries. Most consumer stocks in different forms, durables or FMCG or whatever have completed their bull markets or at least one leg of their bull market. They are now showing signs of clear distribution and they are breaking out. We have already seen that with Hindustan Unilever (HUL), ITC is doing it, Dabur, a lot of them are doing the same thing and Godrej Industries is doing this."
He further added, "It is now coming down. I would assume that the decline is going to be larger than we expect. It still be a correction but it’s a tradable correction. So the idea of going short in this is quite attractive not only for the day trader but for somebody who wants to carry a position."
"Escorts has been in the dumps, we had forgotten what it looks like. What happened was at Rs 55 it made its bear market low, falling from Rs 130 to Rs 55 is no joke. Now it is rallying, it is at Rs 68-69 now, that’s already a 40 percent rally and this is nothing. If a good stock starts rallying then you have very strong movements on the upside."
"It has built a consolidation head and shoulder pattern. It is breaking out of that, that’s good news because the rally has been supported now by a strong chart pattern. I would say go long in it, use equity so that you can carry the position for a long time." Disclosure: I have no holdings in the above stocks.