Hold on to longs; mildly bullish bias for today: Sukhani

Q: Yesterday the infrastructure stocks corrected what do you do with something like a Jaiprakash Associates today?

A: I would buy it; there was a very deep correction yesterday. The trend for most infrastructure stocks is up. The only point is that trading tactics must also be understood. When the markets will opens, there is no rush to buy any of these stocks. But after two days of corrections they probably are wroth buying for the day trader or for the swing trader. So JP Associates is something that I am looking to buy if it remains stable for a short-term target of Rs 78.

Q: Would you say the same of high beta HDIL ?

A: Yes I would say the same. These stocks will eventually correct, which is what they are doing. But this correction could also be choppy which means we will have down days as well as up days. The correction could be sideways, mildly down. So HDIL has already seen its own correction for at least a short-term; two down days, again it’s ripe for a relief rally or a genuine uptrend. So today the attitude should be to go long in it and not to try and sell.

Q: What is the chart of  Chambal Fertilisers and Chemicals  looking like?

A: Chambal Fertilisers is now heading into Rs 80-85 which is a significant resistance point. After some choppiness, it had a rally which is 10 points, which is about 15% and that is enough for Chambal. To my reckoning Chambal is now a short idea. It would be wise to sell Chambal and see it come back to the low of Rs 70 again. So there is around 10% move that is possible which is attractive. It is a sell for me.

Q: How would you trade Manappuram ?

A: I would go long in it. Of all the names we have discussed today, Manappuram is the best. It rallied and then after a rally, for 10 days or so it went flat in a consolidation. That is a perfect cart patter that is a rally, a consolidation and hopefully a new rally.

So this is the easiest and the safest chart to trade on the long side. Go long in it, be patient. Even if the market corrects, Manappuram could do much better.

Q: What is your positional sense of the market? We are talking of small trades in 5200-5400 range but outside that range do you think we are headed higher or eventually do you see the market breaking down below 5200?

A: Everyday we talk and everyday we trade and we sometimes loose sight of the big picture. Although actually we don’t, we have that big picture in mind. My sense is that the Nifty is going towards 6000. So the idea is to buy on dips, to remain on the long side, to avoid short positions as much as possible.

Disclosure: I have no personal holding in the stocks discussed