Don't try to catch falling knives today: Sudarshan Sukhani

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

Q: How are you feeling about the way we have stepped into the January series and what would you watch out for from this 6,000 mark for the Nifty?

A: Today is a different day because all the events in our neighbourhood are going to cast a long shadow over the markets. I don't think we are going to be immune from that. So clearly there is something going on today which we should not participate in. Probably the markets will see a gap down and some selling. My advice would be for traders for the day, don't try to catch falling knives and just stay away.

For the next few days I expect the markets to bottom out in whatever fashion they will. We have also seen a 400-point rally, so that rally was in any case lead to a correction or a dip and that is happening for this reason. Beyond the next few days I don't see harm to the long-term bull market or even to the intermediate trend.

So January should stay ahead and hopefully we should closer higher by the time January ends. The only point is trading tactics deserves some mention don't try and catch a falling bottom.

Q: On the higher end of this market where do you see a target or resistance building up for the Nifty?

A: This is the second time Nifty is trying to decisively cross 6,000 and we will assume that irrespective of what happens in the next few days. The Nifty will finally cross 6,000 and when that happens I expect a surge and expect Nifty to quickly touch 6,500. So that would be my target for the near-term.

Q: Nalco and Ispat Industries ?

A: I would be buyer in both of them inspite of the fact that they have run up a lot. The key question here is when to buy? - Ideally one should wait for a correction, a dip in these stocks and then don't hesitate. We cannot think that there will be a deep correction that is very unlikely.

For Ispat and Nalco, they are now on very big growth paths and much higher levels are possible.

Q: Reliance Energy and ITC?

A; Reliance Energy has been very surprising after having given the impression that it is topping out and maybe going into a downtrend, it made all time new highs again. But I would feel that the fact remains that it is topping out, so for traders there is some momentum, you buy on a dip and take a quick profit but for investors I would say stay away from Reliance Energy. In general stay away from Power Stocks, they are all going into a consolidation.

ITC has moved up after a very long consolidation but it's a low beta stocks, so with so many opportunities around us, I would not advice anyone to either trade or either invest in ITC unless one is a big ITC fan.