Wednesday, 26 April 2017

Buy Asian Paints, Pidilite Industries, Axis Bank, upbeat on M&M; sell Jindal Steel & Power: Sudarshan Sukhani

Sudarshan Sukhani of is of the view that one can buy Asian Paints, Pidilite Industries and Axis Bank and sell Jindal Steel & Power while he is upbeat on M&M and downbeat on Tata Motors.

Sudarshan Sukhani of told CNBC-TV18, "There are buying opportunities everywhere. In my list NBFCs do not figure. I think there are other stocks which probably will give us better short-term swings. So, we start with Asian Paints. Two months of consolidation and a breakout yesterday, that breakout tells us that that stock is going to go much higher."

"We have Pidilite Industries. It was already on a roll, there was a small consolidation. Together with Asian Paints, a lot of FMCG stocks broke out yesterday, even Marico and Dabur India. So Pidilite is a buy for the same reason. There is a sector theme that is developing now. It was in a consolidation and the entire sector is breaking out," he said.

"We have Syndicate Bank. Yesterday, I had Union Bank of India. All PSU banks are giving very attractive charts. The charts are excellent."

"Mahindra & Mahindra (M&M) has been an underperformer. Yesterday after two months of consolidation, it also broke on the upside. I am fairly upbeat on M&M. I was reading that the electric cars will overcome the auto industry. Of course that is far away, but the theme is developing probably. So, I am very downbeat on Tata Motors and upbeat on M&M."

"There is a short sell on Jindal Steel & Power. That stock has had a rally, it then developed something called a broadening top, a very bearish formation which suggests that a significant decline is coming. However, broadly you should be with the market and stay long," he added.

"Axis Bank on the charts is suggesting a significant up move is coming. It is on the verge of a breakout. The numbers can do anything, but if I were just looking at the charts I would say buy now."

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