Nifty target of 5300 still intact: Sukhani

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

Q: Technically are those targets of 5,400 etc for the Nifty still intact?

A: Yes, the target was 5,300 and that target is intact and as it appears now it is not very difficult to reach that target. A target is just a number; it is an anticipation that given the right set of circumstances the market will reach 5,300 it could easily exceed that.

The only signal that we are going to get from this market is if it fails to reach the 5,300 target that will tell us that maybe this rally was just a rally in a bear market. Until that happens we assume that the trend is up as it is and maybe the worst is over and perhaps every dip is a buying opportunity.

Q: How is IT looking as a sector, yesterday is looked like a fresh breakout in many of the stocks after consolidating do you think they are good for more?

A: Yes, they are. We will just take the benchmark Infosys; I had suggested that Infosys is good for Rs 2,000 and that remains valid even now. As the markets are giving us these opportunities of consolidation, this consolidation or even a small pullback is ideally that buy on dip opportunity. IT has been outperforming and to me the chart suggests that this out performance will continue. Traders must time their entries a little better which means you do not buy Infosys today. You buy it when there is a pullback again. But yes, the trend is up and I think there is money to be made in short-term trading in a lot of sectors.

Q: What do you think about Sesa Goa and Glenmark Pharma, these two have made 52-week highs for themselves?

A: Both are excellent stocks for the long-term investor, Sesa Goa were available for Rs 2,700-2,800. This is a stock that is still buyable on dips, on pullbacks retracements even now. You do not buy it after this rally but you wait patiently. For traders, this is an excellent stock to trade in on the long side.

Glenmark is obviously not so volatile, so there is investment buying there but the chart suggests that it is in a long-term uptrend, a long-term bull market of its own. Go and buy it if you wish to.  

Q: How is RPL’s chart looking?

A: RPL’s chart is a chartist’s dream. First it fell down then it consolidated, which was a buying opportunity for investors and for traders and then a classic breakout. It is just following of what the Nifty is doing. For the last few weeks the Nifty has been performing well for technical analysis.

RPL is a buying opportunity, I don’t think it’s a buying opportunity for investors; it has fallen steeply, so we do not know if this rally is just a short-term rally but it’s certainly an opportunity to trade in on the long side.

Q: We have seen a pull back in the real estate stocks, how are DLF and Unitech looking technically to you?

A: They are looking good on the charts for the short-term and the right word is pull back. The trend is down, the long-term trend is certainly down, they have seen a big beating and this is not a reversal of the down move.

Unitech as we had discussed last time they have built those small bases broken out,  their very sheer oversold conditions is giving them a big upmove, so that’s a trading opportunity I do not know whether the overall trend has changed I think that remains down.

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