Buy Bharti on every dip : Technical Trends

What is the call on Bharti?

Sudarshan Sukhani: Bharti is a stock you want to buy on every dip. Whenever the next bull market begins, Bharti is going to be one of those outperformers. So you want to be inside the stock before that period starts. It is outperforming, it is building a base, it has built a base for the last 12 months when it was underperforming and it is a stock you want to put in your portfolio and trade only on the long side.

Has the bull market started for Bharti?

Sudarshan Sukhani: That is not easy to say because it is still in a base and if this market falls further, Bharti will outperform relatively. It would not stop falling. It will fall with the market. So the bull market may not have started but certainly we are seeing the signs of stability. We are certainly building a base for that sign in the market.

Your trading ideas for the day?

Sudarshan Sukhani: I am looking to buy ABG Shipyard. ABG Shipyard has corrected from 500 to almost 350-360. It is finally suggesting that the downtrend may be over, at least a relief rally should come about. So that is one of my picks for the day. The second buying opportunity comes in Dr. Reddy. Now Dr. Reddy and Ranbaxy although it is not in the list but both are doing the same things. Both of them are in an extremely narrow constricted ranges for the last 3-4 days.

In both the stocks, breakout or a breakdown is imminent. I am assuming that the stocks will breakout which means I am looking to buy them but I am going to watch for either direction. That is something for intraday traders. Watch Dr. Reddy and Ranbaxy for big moves in both of them. The third stock is Bank of India which is in a trading range. While the banks were falling, it was not.

Yesterday’s price action suggests that it is likely to outperform the banks and that is my watch list for buying. Now I have a short sell in McLeod Russel. There was a 3 day rally in McLeod Russel which is almost a perfect opportunity to go short in it. The stock is in a significant downtrend and the second short sell is BPCL. BPCL is a favourite short sell. Look for an opportunity to go short in it but chances are it will slide below 600 and go much lower.