Go long on HUL, ITC: Pradhan

Mithil Pradhan, Violet Arch Capital Advisors advice traders to go long on HUL and ITC. One can even look at Ranbaxy Labs as it has potential to move up.

Pradhan told CNBC-TV18, “If you look at the entire August month most of the gains have been produced by sectors like IT, pharma and FMCG. FMCG is a dream run, so you can only keep a number, but I think as long as the bull market continues you should be long in both the stocks like HUL or ITC.”
He further added, “Even McDowells, United Spirits has moved above its make or break level which was around Rs 880. That is the new stock which has entered the bullish space and long positions should be created though it’s a little more volatile. If you look at the pharma or the healthcare index it has given a double top breakout from a 6-7 month kind of a range about two or three weeks back. Stocks like Ranbaxy which have been lagging for sometime now I think they can be bought because upsides can be pretty large from here. As far as the third defensive which is IT I think I would like to wait for a day or two because it’s just trading near to the resistance level and provided there can be some significant gains of about 3-4% above today’s high then I think one should look at buying the breakout in the IT stocks. But till now I think FMCG and healthcare sound much better for long positions.”