Expect market to be choppy; buy only on dips: Sukhani

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After the stellar gains seen over the past few weeks, Sudarshan Sukhani of s2analytics.com expects the market to become choppy now. "The Nifty has this tendency of moving strongly and then going into a hurdle or some kind of a consolidation," he explained.

Due to the prospect of a consolidation, Sukhani advices against taking any trades today. "However, of there is a sharp dip, go and buy it," he added.

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

Q: After last week's gain, what is the trading call for this morning?

A: I would expect market to be choppy now. The Nifty has this tendency of moving strongly and then going into a hurdle or some kind of a consolidation. So now the trade here is for a consolidation. When the market consolidates, essentially there is no trade. If there is a sharp dip, go and buy it because the trend is up.

Q: You would buy Infosys today.

A: Yes. We have seen see choppy conditions and consolidation, some kind of a minor correction also, but that doesn't deter buying because that's the way traders.

Infosys is now at Rs 2945, and it another 55 points it crosses Rs 3000. When it does that, it confirms a significant large picture of a bullish pattern. I hope it will start the process of moving up today, because it has been gaining ground everyday for the last three days. If it doesn't do that, assuming it opens lower, traders should wait patiently for an intraday breakout and go long in it.

Q: Power was in focus all of last week because of fundamental reasons, but technically you like Tata Power? How much more steam do you see on that stock?

A: Tata Power has an excellent chart. The suggestion is that there is another 20% upside, which possibly means roughly around Rs 140. So for a day trader, the pattern is that Tata Power went up and then declined for a couple of weeks. That decline was a flag, which comes halfway in an uptrend. Yesterday the gain started building up, so Tata Power is not only a day trade but also a position trade. You buy options, you buy futures, equity, wait patiently, keep a stop and you should see good gains.

Q: Godrej Industries is also on your buy list today.

A: The buys keep on coming. Godrej has been essentially in a trading range. Even when the market went down, it didn't see much of damage. When they rallied, it remained in a trading range. Now it is trying to push itself out of that upper limit.

For the last three days, Godrej has been gaining ground. If it crosses Rs 215, it moves to new highs and also tries to cross a long term resistance line. So all said and done, it is worth buying. If it crosses this resistance, it will be like Hind Unilever at Rs 300. There will be significant upside suddenly coming in.

So it's a day trade, you never know whether that crossing will be done today, whether momentum should continue. It is also position trade. There is something else. I explained this about a month ago that this market is moving into an area and I have repeated it sometimes where the day trades will be less and the positions will be more because a lot of these positions get advantage of gaps. So as I have said for Tata Power, Godrej - if you keep a position for a few days, you would probably be better off.

Q: Old shorting favourite - Educomp.

A: Educomp has done nothing to justify buying. It rallied, that rally did not even cross the previous high of Rs 280, it fell far short and then it has been falling for the last three days.

Now really you don't really have to go and short anything, but if the market shows the slightest sign of weakness, as they maybe doing, Educomp is an excellent stock to go and sell. It hedges because it is very unlikely to go up. Any decline should see it come down again.

Read on for more stock specific calls..