Apr 03, 2012, 10.42 AM | Source: CNBC-TV18
Sudarshan Sukhani of s2analytics.com spoke to CNBC-TV18 about where he sees the market going and what the best trades are for the day.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Below is the edited transcript of his interview. Also watch the accompanying video.
Q: You were talking yesterday about the fact that the bias seems to be on the long side, you would continue that trade on the Nifty today?
A: Yes, I would. I have long positions and I hope viewers also have it. That strategy should be continued. The short-term trend is now visibly up, not even sideways. There is something else, the broad trend is also up; we are in some kind of an uptrend and we have seen some correction. So once the short-term trend and the long-term trend align, that is a very good place to be in. I would maintain a bullish bias and for today specifically, I would suggest that there should be no attempt to go and search for a top or go and short sell. That should be avoided completely.
Q: You have chosen some blue-chips to go long on today, let us start with L&T?
A: L&T has been in a trading range, a very narrow band and it has been a disappointment, it has underperformed, but if the Nifty is likely to move up as I suspect, then L&T will join the party; if not in the morning, then in the afternoon. It is ripe for a breakout from that narrow band. So L&T is a good stock to be in today. I donít know about a long-term view on L&T, but we are looking at a short-term trade.
Q: Zee Entertainment was looking strong yesterday and you would buy that for more upside?
A: Yes, it was looking strong but Zee has been another disappointment. It rallied and then it has seen a relatively choppy trading range. It is giving impressions of breaking out of that range. For Zee, I am hoping that the breakout will happen, it should but the behaviour has been fairly choppy. It came in my buy list earlier, a few days ago but that didnít work out. It didnít go down but didnít move up either. So again for Zee, traders should understand that if it works out, it should be very rewarding but if it doesnít, they have to give it a breathing space and also accept that it is not working out and get stopped out if that happens.
Q: TCS is another blue-chip pick from you today?
A: Yes. It is in a trading range, yesterday it was literally coming out of that range. That is happening not just to TCS, it is happening to all the three majors, Wipro, TCS and Infosys. So yesterday, Wipro was in my list, today it is TCS. We will see what happens tomorrow. You could buy any of them, the CNX-IT is likely to outperform in the short-term. So this entire sector is ripe for very good day trading opportunities.
Q: The one sell you have is JSPL though?
A: It rallied for one day on back of news and then the rally fizzled out. It is in a downtrend of its own. You donít go and sell anything when a view is that the markets could go up, which is my view for today but JSPL is a short sell. So the message is that at least donít try to buy it with the thought of catching a falling knife since it has fallen so low, that is not a good idea.
In fact, for somebody who sets up these hedges, it is easy to go short in Jindal Steel and then go long in some other places. You could even go long in some other metals.