Market in a strong uptrend; buy banks: Sudarshan Sukhani

According to him, the Nifty can simply be avoided. "Intraday, if you find sharp dips in the Nifty, they are still buying opportunities, even if you have to carry them for a day," he adds.

He further says individual banks are still buying opportunities.

Also read: Market may have priced in much of the positives

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy.

Q: What is your call on the Nifty now?

A: The market is in a very strong uptrend. So, the trading bias is very clearly on the long side. My suggestion yesterday was to take profits. We are short-term traders. We have had a very good run; 5,650-5,700 is Nifty’s resistance. There will be many opportunities to re-enter. That suggestion is valid.

I also felt that the Bank Nifty should be held on to. Individual banks are still buying opportunities. So, the Nifty can simply be avoided. Intraday, if you find sharp dips in the Nifty, they are still buying opportunities, even if you have to carry them for a day. But, otherwise, we can let the Nifty be alone for sometime.

Q: You have picked DCB from banking space today?

A: DCB has been broadly a relative underperformer. The banks have flown yesterday, literally flying. It hasn’t done that. But it is making a base and it is coming out of that base. It has made a very attractive double bottom pattern. It is coming out there, breaking out now.

So, stocks that build bases are in the right sectors, are very attractive for buying in the short-term and as a position trade. I would be keen to watch it today. If there is any sign of life in the banking sector then we would prefer to go long in it.

Q: You have picked IRB Infra  from infrastructure?

A: Some of the infrastructure stocks are now giving bullish reversal patterns, IRB is one of them. It has made a fairly nice bullish ascending triangle and yesterday it broke out above it.

Yesterday of course, a lot of stocks broke out from pattern. But the point is that after a sharp decline, IRB says - I am probably ready to reverse. So, I would assume that the breakout yesterday will see significant follow through on the upside. It is very difficult to time it.

Will the follow through come tomorrow or will it come on Thursday - it is very difficult to say that but it should come. So, this is a long idea. If necessary carry it.

Q: Would you sell into Ranbaxy for the day?

A: It was a selling idea yesterday also, it continues. Ranbaxy has made a small but fairly strong bearish pattern. It has broken down from that. If not anything, it pertains a sharp correction on the downside. For all we know, it could be a major intermediate reversal.

We do not know that. What we understand is that this stock is looking for lower levels. So, Ranbaxy is a short sell. See how all of a sudden, IT because of different reasons, but pharmaceuticals and FMCG have turned absolutely turtle on the opposite side.

Q: For the last three weeks Raymond has had a very smooth run, what are the targets that you would place on that one now?

A: The pattern target for Raymond is above Rs 400 and immediate target is Rs 382-383. Raymond has come in our buy list earlier for the same reason. It was then developing a double bottom and we said okay, we can anticipate it.

Yesterday, it has confirmed that double bottom - that is a major reversal pattern. So, Raymond is probably good for much more than what I am saying but I would assume that it is a buying opportunity for the day and also something that we can carry along.