Expect Nifty to trade in 5430-5330 range today: Sukhani

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Expect Nifty to trade in 5430-5330 range today: Sukhani

Technical analyst Sudarshan Sukhani, s2analytics.com expects Nifty to remain rangedbound between 5,430 and 5,330 today.

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

Technical analyst Sudarshan Sukhani, s2analytics.com expects Nifty to remain rangedbound between 5,430 and 5,330 today.

"If it moves up, there is another breakout, although it does seem unlikely it will do that today. If it moves below 5,330, the short term trend changes,"he added.

Sukhani has a sell call on IDFC , United Spirits . He is bullish on Crompton Greaves , TCS  and Bajaj Auto .

Below is the edited transcript of Sukhani's interview with CNBC-TV18. Also watch the accompanying video.

Q: There is a little bit of caution in the air this morning. Technically, how would you approach the index?

A: It does appear that the index is now in a small trading range and that trading range is holding on. So, the approach is 5,430 is the upper level and 5,330 is the lower boundary. The Nifty can move up and down in this 100 point range. If it moves up, there is another breakout, although it does seem unlikely it will do that today. If it moves below 5,330, the short term trend changes.

Q: IDFC is something that you are not feeling very bullish about. Can you tell us why?

A: IDFC has seen a sharp rally, then a consolidation and that consolidation has already been broken down on the downside. It is equivalent to the Nifty finally saying okay, I am going below 5,330. IDFC has done that.

To that extent it is a leading indicator of the financials at least. If at the very least, we are going to see a correction in IDFC and we don't know whether this was a bear market rally. IDFC is also one of the weaker financial stocks.

Q: United Spirits too is something that you think should drift lower.

A: Yes and that has been on my sell list repeatedly. It will drift lower and eventually it will go much lower. But, for today the stock is a sell. In a choppy market, we have buying opportunities as well as selling opportunities. Both could actually be taken. This one is a sell.

Q: On the buy side though you are buying Crompton Greaves this morning.

A: There are two reasons. Crompton Greaves built a very decent base and broke out of it. These reversal patterns which start will bases and breakout, normally predict significant upside over a medium term, not necessarily in a day or two. That's one reason that a consistent uptrend is visible. The second is that Crompton Greaves made a new high for this up leg on Friday. So, stocks that are making new highs are usually bullish.

Q: What about something like TCS?

A: TCS has been an outperformer. Earlier we had suggested that the IT sector is bottoming out and is likely to lead the next leg and that happened. The 5,200 to 5,400 leg of the rally was led by them. These stocks are not suggesting that they have sort of entered the exhaustion area.

So, it is quite possible that while something else would come down, IT stocks would continue their momentum on the upside. TCS is a buy. But for today, I would suggest it is a buy on an intraday dip. There is no need to rush and buy it.

Q: You are bullish on the two wheelers too, what is your view on Bajaj Auto?

A: Bajaj Auto has completed a deep correction or a bear market. The rally we have seen has been fairly consistent. Again, this part of the rally on Friday it made new highs. The momentum is clearly visible without being overbought or without suggesting signs of exhaustion. If there is anything to buy, Bajaj Auto should be the selected stock because in a choppy market there will be stocks that go up and this stock is willing to reach Rs 1,800. Once it crosses Rs 1800 it starts in a completely new high area.