Don't question wisdom of mkt; best to go long: Sukhani

25039 Investors following Crompton Greave. Share this News with them.

0

Like this story, share it with millions of investors on M3

Don't question wisdom of mkt; best to go long: Sukhani

After the powerful rally we had yesterday, Sudarshan Sukhani of s2analytics.com says that it is bet not to question the wisdom of the market and go long.

Post your opinion here

 

0

Tweet

Share on Tumblr

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 Crompton Greave See messages about Crompton Greave

After the powerful rally we had yesterday, Sudarshan Sukhani of s2analytics.com says that it is bet not to question the wisdom of the market and go long. "Either the traders was long yesterday, or goes long at any intraday correction today," he said to CNBC-TV18.

Sukhani advices traders to add further positions if the Nifty crosses 5220, but lighten up and stay on the sidelines if it falls past 5150.

Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: It was a big and powerful rebound for the market; it's almost brought us back to where we were. How does the trader approach setoff today?

A: The trader tries to go long. Either the trader was long yesterday or at any correction, any intraday consolidation, the trade should be to go long. We don't question the wisdom of the market, whatever that wisdom is.

Q: We are just discussing Coal India . Technically what is the picture like?

A: Technically it's quite dismal. First of course relative strength has been poor. It's underperformed the Nifty in the recent days. Beyond that it has strong resistance at the Rs 340 level. It's not crossing that and it's repeatedly coming down from there making some kind of an inverted view. It's a rounding top pattern for technically oriented listeners. So that's fairly bearish. It suggests a target of Rs 300 and in any case is an avoid or a short sell.

Q: On the buy side you have got Bata India again today.

A: Bata India is now coming out of a very deep correction. It's in any case rallying. This is a stock that went up from Rs 150 and has not completed it's up move. Strong stocks can do wonderful things. Bata India for different reasons is one of those.

Yesterday's rebound in Bata tells us, there is more headroom here. We should be trying to go long on an intraday basis. It's also a swing trade.

Q: What about something like a Century Textiles ? That was strong yesterday. You see more on those charts today?

A: I don't think so. Century again has gone through a very deep correction, almost a bear market. That seems to be getting over. It's now bouncing up. Its pullbacks and retracements are shallow and the rallies are much higher, so I would say that Century Textiles is a fairly decent buy.

For today, intraday traders should focus on some of the midcaps because the Nifty itself may or may not continue its significant rally but midcaps will.

Q: You are cautious on some of the ADAG stocks like Reliance Capital though?

A: Yes, I am very cautious on them. In spite of the significant rally we saw, Reliance yesterday failed to hold its intraday highs. It closed higher than the previous close, but lower than the highs. One day we will see all of these stocks come tumbling down except for RComm and Reliance Cap will be the leader in that pack. So any signs of weakness in the market I think I would go and look to buy puts in this stock.

Q: What about HCL Tech from technology? You are bullish on that name?

A: I am bullish on HCL Tech. Actually I am bullish on all the four large IT cap stocks. This entire IT pack is now turning around. HCL Tech is probably going to play catch up and therefore represents the best intraday or swing trading opportunity for today. Primarily all of them, the entire sector, is looking cheerful and will be one of the big leaders if the Nifty goes up.

Q: Grasim on the buy list as well today?

A: Grasim is a stock we don't track much. I am a little confused about whether it's a holding company or a cement company, but whatever it is, the stock itself has been going through a very decent up move quietly and softly. So Grasim represents a buy.

Actually it's very easy, there are spreads which needs to be considered, it's better to take a swing trade by today. Hold for a couple of days or even more and I think Grasim could be a very decent winner.