Buy Raymond on declines: Sukhani

Buy Raymond on declines, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Raymond corrected from Rs 425 to Rs 300 and that is a deep and a sharp correction. That correction also brought it to an earlier support level giving some kind of a double bottom pattern. It has been consolidating for the last ten days as the Nifty has been. It is moving out of that consolidation because this movement is coming after a big decline, not after a big rally. I would expect that this consolidation will sustain. Raymond did well yesterday. It didn’t sustain the highs but closed better. If there is a dip today then it becomes a buying opportunity."

He further added, "We have been selling Hindustan Petroleum Corporation Limited (HPCL) earlier and Bharat Petroleum Corporation Limited (BPCL) was also a sell because all three oil marketing companies (OMCs) are weak and BPCL finally cracked yesterday. Yesterday’s big decline is going to see some follow-through on the downside till it reaches Rs 680 and eventually Rs 650. It is still in a trading range but it hit the top part, upper end and now is likely to come to Rs 650, which would bring it to the lower end of the range."

Disclosure: I have no personal holding in the above stocks.