May 22, 2013, 10.31 AM IST
Buy on a sharp intraday dip and on a sustained rally consider going short, recommends technical analyst, Sudarshan Sukhani.
In an interview to CNBC-TV18, technical analyst, Sudarshan Sukhani of s2analytics.com shared his reading and outlook on market and specific stocks.
Below is the verbatim transcript of Sukhani's interview with CNBC-TV18.
Q: How would you approach trade this morning?
A: The approach is to have it on a day-to-day view. The market has given some sense that they have faced significant resistance at 6,200 plus, perhaps a process of distribution is also going on, we do not know. However, I am assuming it is a probability.
As of now market is likely to be choppy. For the day the trade should be very easy. If one sees a sharp intraday dip then buy it only for an intraday trade and the reverse happens. If one sees a sustained rally then consider going short. Therefore, that means that the market is choppy and indecisive. One will have to wait for a resolution of this indecision. It will come about.
A: Yes. BHEL has made double bottom and tried to go below Rs 175-180 repeatedly and fortunately that level has been a sustained support and after that support it has been moving up, it also did nice things on Tuesday so the message is that perhaps the lows of this bear market has been made for BHEL and the higher high-higher lows pattern is now developing and suggesting that a new uptrend has started. Technically it is not only a day trade, it is also a position trade.
Q: What about HCL Technologies from IT space because IT has outperformed in the last couple of days in the falling market?
A: HCL Tech came in our list two days ago when it had fallen a lot. The idea was that it is standing at support and this support should hold. It held. If support is holding and IT is outperforming and the IT index is far more cheerful than the Nifty is then HCL Tech's rally should begin now and it could easily go back to Rs 800 and test the earlier highs. It is a very attractive buying opportunity in a choppy market, things will go up and IT should.
Disclosure: Sudarshan Sukhani has no holdings in the stocks discussed.
Tags: Sudarshan Sukhani, s2analytics, Markets, Nifty, Sensex, NSE, BSE, BHEL, HCL Tech, Tata Motors, CESC, Dena Bank, IDFC, IRB Infra, IVRCL, GMR Infrastructure, Suzlon Energy, Dr Reddys Laboratories
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