ICICI Bank to remain an outperformer, says Sukhani

ICICI Bank should remain an outperformer in the bank as well as in the broader market, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "ICICI Bank and Axis Bank have been favorites. While the Nifty was going in a trading range ICICI Bank was mimicking the Nifty or rather going with it. It is in a narrow trading range, it has not gone through any kind of correction. Stocks that don’t correct when the correction is replaced by a trading range tell us that whenever the next up move comes this one is going to be a distinct outperformer."
He further added, "I think banks are now looking up. The Bank index closed very well on Tuesday. ICICI Bank should remain an outperformer in the bank as well as in the broader market. So if the markets are going to see any kind of rally even a choppy market today, ICICI is a perfect buy on any minor dip. Take a profit if you see a big swing on the upside and for position traders just carry the position."
"Coal India was in our sell list earlier. But the stock doesn’t crack Rs 350. For the last three weeks it is bouncing from Rs 350, getting resistance at Rs 360, again that narrow range but the sense is that while this stock is stalling at Rs 350 and not breaking down, momentum has slightly inched up on the upside. So a stock that has made a trading range although on the lower side and now gets support from momentum is worth buying into. It is a tight stop loss. If it doesn’t work we get out, if it does that means we have bought at the lows of what could now be a correction. So Coal India is worth buying into."