Choppy market: Sudarshan Sukhani gives buy and sell calls

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Choppy market: Sudarshan Sukhani gives buy and sell calls

Sudarshan Sukhani of s2analytics.com says, the market is choppy. “It’s possible to have buying as well as selling opportunities,” he adds.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Reliance Comm See messages about Reliance Comm

Yesterday, the Nifty lost 26 points and shut shop at 5,335, while the Sensex too closed in the red falling 85 points.

Sudarshan Sukhani of s2analytics.com says, the market is choppy. "It's possible to have buying as well as selling opportunities," he adds.

He will short sell Reliance Communications , Tata Power , Gujarat Fluoro and ITC .

However, he has buy call on Bombay Dyeing and ONGC .

Houseviews: Brokerages call on four stocks!

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: What is your call on Reliance Communications?

A: The market is choppy. It's possible to have buying as well as selling opportunities. Reliance Communications has been an outperformer. But now it appears that it may correct. The stock rallied significantly and now a strong rally will have some kind of correction. So, we are trying to trade the correction. We are not going against the main trend, which remains up. So, RComm is a short sell, only for professional traders with a stop and a target of as low as Rs 85.

Q: You have seen some bad performances from the power sector over the last couple of days, Adani Power yesterday. How would you look at technicals of something like a Tata Power?

A: It is a short sell. Tata Power is again a stock that has been an outperformer. So, clearly we are not saying the trend in the stock has changed decisively or even changed at all. What I am saying is that for the momentum trader, for the short-term trader, Tata Power suggests a strongly overbought condition and candlestick pattern. So, for such traders, Tata Power is a short sell. Look for a target of Rs 102. There is no need to buy it now, until the overbought condition doesn't get tempered down.

Q: Your third short today is Gujarat Fluoro.

A: Almost all short sells will be corrections and Gujarat Fluoro is one of them. After a strong rally, the stock is now suggesting a strongly overbought condition. Momentum now seems to be waning. There is a sense that it is possible that the stock prices may come down all the way to Rs 470. So, for professional traders, there is a short selling opportunity.