Sukhani told CNBC-TV18, "Syndicate Bank has made a bearish head and shoulder pattern, broken down below Rs 100 and there seems to be no reason to expect that this will be different, the chances are that it will come down to Rs 85 eventually which is a target. So Syndicate Banks breakdown yesterday tells us that there is much more downside."
He further added, "F&O can do a number of unusual things but within that caveat I think there is much more benefits in going short in most of these stocks than in going long. Syndicate Bank is a sell and any number of midcap stocks have made those distribution patterns and broken down."
"I would say the same of an Axis Bank because at Rs 1100 it’s made almost a picture perfect descending triangle and come down from that. That gives a target of Rs 950 for it. Again the same thing, these distribution patterns have some meaning. It’s very unlikely that 100 or 500 midcap stocks show a distribution pattern, breakdown and one fine morning revert back and reverse and don’t continue and don’t give a follow through. So, now there is a very clear message in the market, bands are breaking down, tracking down and that’s why Axis comes in the list."
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