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Technical analyst Sudarshan Sukhani of s2analytics.com expects market to remain choppy this week, warning traders to be cautious while taking any short positions.
Technical analyst Sudarshan Sukhani of s2analytics.com expects market to remain choppy this week, warning traders to be cautious while taking any short positions. The week is crucial for the market as the much-awaited Union Budget 2013 will be presented by finance minister P Chidambaram.
The Nifty ended on a flat note on Friday at 5850 levels, according to Sukhani, any further fall towards 5,700 should be used as a short-term buying opportunity.
"We are near very strong support level at 5,780-5,800. We are moving down and we should take advantage of intraday moves on either side," he said in an interview to CNBC-TV18.
Below is the verbatim transcript of Sukhani's interview with CNBC-TV18
Q: How would you trade this important week?
A: I would be wary of taking short positions this week on dips. The market is likely to be choppy. We are near very strong support level that is at 5,780-5,800. Therefore, a move towards 5,700 should be use as a short-term buying opportunity. The keyword here is short-term for a couple of days or even intraday.
I would be willing to take short positions on any market rally. These would be positional trades where I am betting that the market will fall down significantly lower than 5,800. That would be in March options and options are the best way to trade it. So, the view is that we are moving down but this week could be choppy and we should take advantage of intraday moves on either side.
Q: Market was flat on Friday, but some stocks like DLF did well.
A: DLF is something that has a theme. It is a long-term buying opportunity. I have spoken about it and put it in my buy list repeatedly. The reason why it comes again and again is because it gives us new buying opportunities. So, this theme is going to be a long-term affair. DLF currently is just breaking out to new highs for this upmove. It is a buying opportunity. It is being supported by a very strong long-term outlook on charts that is on prices. Therefore, in both cases DLF is worth buying into.
Q: McLeod Russel keeps coming up in your buy list. Do you see big targets there?
A: I see big targets there. It was in a trading range. After a big rally that trading range has decisively broken out. Intraday targets will be more modest but eventually it should cross Rs 400 and go higher. It does appear that it is doing some very interesting things. Perhaps it is becoming some kind of a unique asset in the sense that it is one of the very few stocks which have large plantations.
Disclosure: I have no holdings in the stocks discussed.
READ MORE ON Sudarshan Sukhani, Markets, Nifty, Sensex, NSE, BSE, choppy, DLF, McLeod Russel, Infosys, Wipro, Punj Lloyd, Century Textiles, Maruti, PFC, Coal India, Bharti Airtel, Idea, Apollo Tyres, HUL, Wipro
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518.18 -26.73 -4.91%
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