Far cry for Nifty to cross 5100, buy GE Shipping: Sukhani

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Far cry for Nifty to cross 5100, buy GE Shipping: Sukhani

The market is expected to go up only if 5,100 levels are taken out, said Sudarshan Sukhani of S2analytics.com. Until that happens, he suggested accepting the trend and trade with it. Talking about the stocks, Sukhani advised to sell Tata Steel, buy puts on it and be bearish on it. However, he feels it’s a good time to buy GE Shipping.

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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 Tata Steel See messages about Tata Steel

The market is expected to go up only if 5,100 levels are taken out, said Sudarshan Sukhani of S2analytics.com. Until that happens, he suggested accepting the trend and trade with it.

Talking about the stocks, Sukhani advised to sell Tata Steel , buy puts on it and be bearish on it. However, he feels it's a good time to buy GE Shipping .

Here is the edited transcript of his interview to CNBC-TV18.

Q: What is your call on the Nifty?

A: We are in a downtrend. So, I will ignore the minor trend changes taking place at different levels. The market is expected to go up only if we take out 5,100 levels, which is a far cry. Till that happens, accept the trend and trade with it.

Q: Commodities have been incredibly weak over the last many sessions. It looks like Tata Steel could go further down. What is your view?

A: Tata Steel is already on the way down. It has broken significant support levels at Rs 390. The targets are so lower that I cannot even discuss it. Tata Steel is probably one of the weaker stocks in the Nifty because Rs 350 are the modest down target even today. It is better to sell Tata Steel, buy puts on it and be bearish on it.

Q: You would buy GE Shipping today?

A: Yes. GE Shipping has been in a different environment. It's moving up, while the broad market was coming down. It has also built some kind of a small base, but not much. Because the stock is outperforming and giving bullish chart signals. It is a good time to buy. It's on the verge of a small breakout if it goes above Rs 225 or so. GE is a buy. It comes in the F&O segment. There are lot of instruments that we can use to go long and then wait patiently for the market to reward us.

Q: Jet Airways is still a sell in your book. What is your view on that stock?

A: Jet Airways has nothing in it. It rallied and one should sell into that rally. The rally has dissipated at Rs 200. It's breaking down from enormous support level. If it does that, then there is a free fall in it. Traders should take advantage of that fact and go short.

Q: Century Textiles had quite a rough cut yesterday. Would you sell it further today?

A: There will be follow-through, assuming that the markets don't become one-sided after the RBI policy. If we go 250 points on repo cut, then this market will remain choppy. This market will not be influenced by small measures of the RBI. One of the stocks that are looking distinctly weak now is Century Textiles. Many of these stocks are breaking the support levels and Century has already done that at Rs 260-265. It's now lower than that. There should be follow-through on the downside. Assuming that the market goes up, you sell into a rally.

Q: You have picked Shriram Transport Finance today. How should one play that?

A: It is in anticipation of RBI doing something good. It's not a buying opportunity, but the charts of Shriram Transport say that it has come back to the levels of about Rs 488-490 where there might be a bounce back trade. One should trade in it with an appropriate understanding of risk. It's a good stock in general, but one should keep a stop at Rs 515. If there is a bounce, then you are buying almost at the low of the double bottom.

Q: Would you take a chance with Cipla this morning?

A: Cipla is not a very comfortable stock, but in the short-term, it's suggesting that it's ready for an up move. In any case, the pharma sector is broadly outperforming the market. Cipla represents some buying opportunity for the swing trader. Sometimes, these stocks like Cipla or Sun Pharma can give very sharp moves. It's worth taking that trade. Take a chance, keep a stop at Rs 323-321 and you could be surprised on the upside.

Also watch the accompanying video for complete interview...