Mkt to see resistance at 5300 levels: Sukhani

Excerpts from CNBC-TV18’s exclusive interview with Sudarshan Sukhani:

Q: What kind of targets are you trading the Nifty with now?

A: My target remains more than 5,300.  But that means that we are very close to these targets and the chances are that this range - 5,300 and thereabouts is likely to offer a lot of resistance. So the key here is buy on a dip and take small profits. I am not looking at least not initially in this week for a very big move in the Nifty. This applies to most individual stocks. There has been a decent run up, the Index now is looking at resistance, it should cross that level sooner or later. But short-term traders must either take partial profits or keep very close stoplosses.

Q: Any signs you are getting technically at this point that from these levels that you are talking about you could see a sharp reversal in the Nifty?

A: No, the signs are not for a sharp reversal; the signs are there that we could continue this process of consolidation. Eventually, that consolidation could lead to another upside breakout or a downside move that is always a question mark. We will simply assume that because that trend is up, the next leg will also be up. So the answer is there are no signs of a reversal of trend.

Q: Is the other range you would work with as well 5,000 to 5,400 for the Nifty over the next few weeks or do you think it might be wider?

A: No, I think I would be agreeing with this; it is roughly that. We can all have our own ideas of 50 points here or there. But broadly it is 5,000, which is that round figure support and 5,300-5,350, which is the first level of resistance. Now at this point it is difficult to imagine the Nifty slide down to 5,000. So the chances are that we will eventually develop a higher low which would be the support level.

Disclosures:

I have delta neutral positions in Nifty and investments in shares.