Market to decide its direction today: Sudarshan Sukhani

In an interview to CNBC-TV18, Sudarshan Sukhani, s2analytics.com says the Nifty will see the range expansion today. "The market will probably take a path, either upward or downward. I think a decision, atleast for one or two days, will be taken by the market today," he adds.

After the initial half an hour, 45 minutes, if the market starts going up, then he will close his short positions and look to take intraday longs.

Also read: Buy puts on Nifty, growth risks persist, says Goldman Sachs

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

Q: Yesterday was a slow day where we just hovered in a 50-point range. What is the expectation for today?

A: I think we will see the range expansion today. That means the market will probably take a path either upward or downward. These narrow range days usually don’t last very long. Yesterday, the Nifty was not only in a narrow range, it also did not break the lows that we created on Friday, 5,238. So, to that extent, yesterday did not give a big push to the bears. It had a mildly lower close without violating the lows.

Today, I am rather open. After the initial half an hour, 45 minutes, if the market starts going up, then we will plan to close our short positions and look to take intraday longs. So, it’s a choppy market in the beginning. But I think a decision, atleast for one or two days, will be taken by the market today. Whichever side it goes, there is some money on that.

Q: What is your view on Bombay Dyeing ?

A: Bombay Dyeing has a horrible chart. Its rally has completely fizzled out. From Rs 540, it’s come down to Rs 430-435. It’s a relentless decline. It’s not as if it was a step by step decline. The chances are that the stock is going to go all the way to Rs 400, before it finds any kind of support. Bombay Dyeing is a short sell. If the market shows slight signs of bearishness or choppiness, this decline is going to continue. So, it’s a good idea to go and sell it.

Q: You have a sell call on HPCL also today.

A: Yes. Yesterday, we had one on BPCL. These stocks keep on falling. HPCL had a set-up that suggested that further declines are possible today and very likely also. There is nothing. Like Bombay Dyeing, this stock is falling relentlessly. I don’t know what’s going on, but the trade is a short sell. The chances are even if the Nifty were to go up, this short sell would probably work out.