See lower levels in Gujarat Fluoro: Sudarshan Sukhani

See lower levels in Gujarat Fluorochemicals, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Tech Mahindra saw a very sharp rally and then it has been correcting. That correction has more or less stopped at one-third point, one-third correction is normal and expected. So this is a high-risk, high-reward trade."

He further added, "If this is the place where the correction ends then clearly we are buying at the lows of the decline and looking forward to new highs in Tech Mahindra. If it does not, we have a very small stop loss, so we get stopped out. In that sense, I am sorry it is a low-risk, high-reward trade. The risk is where it is but the rewards could be new highs and the day trade could be converted into a positional trade. So I would say Tech Mahindra remains an opportunity just do not let your stop loss be forgotten."

"Gujarat Fluorochemicals is one of those erstwhile momentum stocks, which could do no wrong and which went up and up. There was no other way, it is doing the exact opposite now. The rally in Gujarat Fluoro was weak, it was tepid, it was much lower than the previous highs it made, while the Nifty has been making new highs, Gujarat Fluoro is doing the exact opposite. It is in a trading range which is now breaking down. I think a lot of midcaps will see a significant pain in the next ten-fifteen days, Gujarat Fluoro probably is looking at much lower levels."

Disclosure: I have no holdings in the above stocks.