Sudharshan Sukhani of s2analytics.com advises the investors to stay invested in the Yes Bank stock. One of the best technical analysts in the country, Sukhani advised the investors to hold on to bluechip companies without getting nervous. In conversation with CNBC TV-18, the expert believed that, this is a long term bull market, and there is still a lot of opportunity in the Yes Bank stock for the net 2-3 years. He said that the prices will be volatile in the short term, and it must not unsettle the investors. On the back of excellent first quarter results announced by the company, the shares of the bank were trading at all time high levels. The bank had reported a net profit of Rs 952.65 crore, up by 32% as compared to the profit reported in the corresponding period during the previous fiscal. A lot of domestic and international brokerages such as Merill Lynch, Nomura, CLSA, Spark, Axis Capital, Prabhdas Liliadhar etc had revised their target price upward for the stock. The shares were trading at Rs 1,811 on Monday afternoon, down by more than 1.5% since the previous close. The stock, with year to date returns of 60%, has outperformed the BSE bankex Index 25% in the current year. A majority of these gains have come in the last one month as the stock is up by more than 25% in the last one month.
The expert was skeptical about the prospects of VA Tech Wabag Ltd and told investors to exit the stock. He said that the stock has been in a short range for quite some time now, and is an underperformer. The stock has lost more than 10% of it’s value in the last one month. The chartist added that if a mid- cap stock underperforms, it’s not good news. The viewers had specifically asked the expert about Ashoka Buildcon. Sudarshan opined that there was a lot of hype around buildcon companies, but the stocks have not returned anything. The expert pointed out that if the stocks don’t perform when the Nifty is at 10,000, then they are unlikely to be outperformers. Sukhani told the investors to switch to financial services and FMCG stocks.