Go long, if Nifty continues to strengthen: Sukhani

In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com says, the Nifty is resolving the small trading range on the upside. "Based on that, we have taken some mild long positions yesterday. If the Nifty continues its strength, maybe not in the morning, but mid-afternoon or whenever, then we will add to our long positions," he adds.

Below is the edited transcript of his interview with Udayan Mukherjee and Sonia Shenoy.

Q: What is your call on the Nifty now?

A: The Nifty is resolving the small trading range on the upside. In any case, it is most likely scenario because a consolidation occurred after an upmove. Usually, the trend continues. Based on that, we have taken some mild long positions yesterday.

If the Nifty continues its strength, maybe not in the morning, but mid-afternoon or whenever, then we will add to our long positions. So, atleast today we are not going short on the Nifty. The idea is to build on long positions and see if 5,350 breakout is decisive.

Q: Orchid Chemicals and Pharmaceuticals is the only sell in your list?

A: Yes, that’s because some selling ideas should be kept in mind otherwise we get biased only one side. But broadly, I think that markets are looking cheerful.

Orchid is in a big mess. It’s now on the verge of breaking the Rs 100 level. That’s not the way a good stock should behave. It’s falling and not stopping.

So, Orchid is a short sell, although, that short sell should be taken only if we get a view that the markets remain choppy.

Q: You have a buy on ACC today?

A: ACC is making new highs just as Ambuja Cement and UltraTech Cement . Yesterday there was a new high. These new highs are usually accompanied by a follow-through on the subsequent days. That is happening with cement regularly. So, we want to go long in ACC preferably on some kind of morning or intraday dip.

Q: Havells India from the midcap is a buy today?

A: Havells is a much better choice because it has corrected 10%. So, from Rs 600 it has already come down to Rs 550 but it’s in an uptrend. So, we are now buying on a dip and buying in dips is usually a good idea.

Havells is in a trading range. It’s on the verge of breaking out, above that range. The first target for position traders could be Rs 600 where its earlier highs were made.

It’s a stock that’s in a sustained up move. So, today we are anticipating a breakout on the upside and looking to go long.

Q: How does Jain Irrigation look for someone who wants to get into it today?

A: I think it looks very interesting. All of this depends on the fact that the Nifty makes the slightest upmove, not necessarily large. But if it holds on to its gains which it made yesterday, a lot of the midcaps should begin to move up and Jain Irrigation has already completed its bear market.

The sense is that the worst is over. We have been upbeat on this stock. It corrected. Yesterday it moved up and that momentum should continue. It should see much higher levels, if one is a position trader.

Disclosure: I have no holdings in the stocks discussed