In an interview to CNBC-TV18, Sudararshan Sukhani of s2analytics.com shares his views on his favourite picks right now.Below is the transcript of Sudarshan Sukhani's interview with Senthil Chengalvarayan and Anuj Singhal & Sonia Shenoy on CNBC-TV18.Senthil: When you gave us these three stocks Aurobindo Pharma, Adani Enterprises and Havells were your three picks you also said that there were lot of other midcaps that showed similar chart pattern. So gives us some names there?
A: Midcaps are high risk opportunities in general so I have to give you that caveat. However within that GMR Infrastructure one of the favorites is giving signs of the say a rally and momentum and then we have a sharp cut today in Mindtree and that becomes a buy on dip opportunity we had two big days in Mindtree and a decline today. Public sector undertaking (PSU) banks continue to be favorites. I just want to give a warning that midcaps come with their own risk.
Sonia: Technically have you taken a look at Mahindra CIE Automotive.
A: No, I track Mahindra Ugine Steel and there is a disclosure I own shares in and it is a good stock.
Sonia: How good is the stock it is already up above 20 percent so for someone who is not in the stock does it makes sense to get in or has it run up too much?
A: It is run-up too much that would be my opinion but this is more of our fundamental call then a technically call because it is been running up too much for the last one year.
Anuj: In terms of Auto names Mahindra & Mahindra Financial (M&M) has corrected quite a bit, your call on this one?
A: I am not upbeat anymore on the auto names. M&M has corrected the other stocks have run-up so in either case the entire sector is an avoid for this time. We have to see what kind of consolidation comes about and whether new patterns come for buying. However M&M is the weakest of the lot but others are not justified in buying at current levels.
Senthil: So just take us through Maruti Suzuki because it has been hitting new highs. When you say consolidation are you expecting time or are you expecting a fall there?
A: At the risk of being wrong and I hope I am wrong, I am expecting a fall. This time market, the Nifty and everything else which is gone up had a V-shaped rally. V-shaped rallies don’t end very well. We were falling and one day we started rising and that happened to most of the blue chips also including Maruti so I would expect a decline in prices.
Sonia: Is that the sense you are getting about the market as well. At some point in time are you expecting to see a big crack towards the end of the year?
A: Unfortunately at some point some where we don’t know when. However last time when we rallied in April, May it was after a big base building exercise that took eight months to build the base. Therefore that rally was sustainable and we were very upbeat but the current rallies we are seeing are coming just literally on a turning on a dime they are not sustainable.
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