SENSEX NIFTY
Feb 27, 2013, 01.01 PM IST | Source: CNBC-TV18

Intraday trading to be difficult this week: Sukhani

Technical analyst, Sudarshan Sukhani, s2analytics.com said to keep small volume. If it does not work then get stopped out quickly. Going short in front of news on an intraday basis is not a good idea.

In an interview to CNBC-TV18 technical analyst, Sudarshan Sukhani, s2analytics.com shared his outlook on the market and stocks across various stocks. According to Sukhani, the downtrend in the market is likely to persistent, till Nifty reaches 5,500 or close by.

"The view is clear on the Nifty; we are moving down, intraday trading is going to be difficulty in this week anyway," he said in an interview to CNBC-TV18.

One can still go long today and tomorrow, but with small volume. "If it does not work, get stopped out quickly. We are moving down, intraday trading is going to be difficulty in this week anyway," he recommended.

Below is the verbatim transcript of Sukhani's interview with CNBC-TV18

Q: Very difficult day of trade yesterday, if you get a bit of a pullback this morning, how should a Nifty trader approach it?

A: The suggestion has been to have two different approaches. The trend is down. I think we have been reiterating that repeatedly. Have a positional view, keep positional trades on the short side and just keep them on even if there are sharp intraday or couple of days of rallies. The downtrend is likely to persistent, till we reach 5,500 or close by. That is a long way off. That is one part of it.

Intraday trades are very difficult in front of news, which is why the suggestion was try to go long and keep your volumes low. That has not worked out. However, consistency in this thought is there. We still want to go long today and tomorrow.

Keep very small volume. If it does not work, get stopped out quickly but going short in front of news on an intraday basis is not a good idea, in principle. The view is clear on the Nifty; we are moving down, intraday trading is going to be difficulty in this week anyway. 

Need spectacular Budget to reverse mkt mood, trend: Udayan

Q: On individual stocks you have got some comfort in going ahead with short sells like in Bank of India ?

A: Yes, Bank of India has been falling like most public sector undertaking (PSU) banks and then it went into a small trading range. It is on the verge of cracking below it. A lot of PSU banks have turned around, completed their bull markets and have embarked on what promises to be a very deep decline. Bank of India is one of them, go short in it, do not expect big rewards in intraday trading, which is why stay with the best of the blue-chips if you want to go long. Everything else is a short; Bank of India certainly is for today.

Q: Your views on Raymond ?

A: Raymond has been coming in the shortlist repeatedly; it does not stop at all. Now it is making new lows again for this downtrend. Therefore, a stock that suggests that it is willing to go lower than the broad market and going lower on and on is something that one should sell and there is a theme here. Century Textiles and Industries , Raymond, Bombay Dyeing and Manufacturing Company , all of them have suddenly collapsed. That was the collective theme when they were going up and collectively they are coming down.

Disclosure: I have no holdings in the stocks discussed.

1 2

ADS BY GOOGLE

video of the day

Market to correct if no reforms; like Dabur, Marico: Kotak

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.