Markets will slide down further: Sukhani

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Markets will slide down further: Sukhani

Technical analyst, Sudarshan Sukhani finds it extremely difficult and almost unlikely for the Nifty to test 3200 levels.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Hind Motors See messages about Hind Motors Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Mahindra and Mahindra | Sun Pharmaceutical Industries | Tata Motors | Maruti Suzuki India | Suzlon Energy |

Technical analyst, Sudarshan Sukhani finds it extremely difficult and almost unlikely for the Nifty to test 3200 levels.

Sukhani further comments that the market will slide down further. According to him, as the market slides down, it will make lower highs and hence there would be no reason for 2900 levels on the Nifty to hold.

Sukhani also says that although one can postpone the inevitable, there's much more pain left in the market and one has to endure it.

Excerpts of CNBC-TV18's exclusive interview with Sudarshan Sukhani:

Q: Do you think 3,200 level on the Nifty is proving very difficult? Do you see it going past that?

A: Yes, it is proving very difficult and I don't see it going past that. It looks very unlikely. The technical indicator that we use, should cross 60 if the market turns bullish. I have been waiting for the indicator to do this but we have had a big bull run from 2600 to 3200 on the Nifty but that indicator has not crossed 60 yet. With every passing day, I feel that it will not happen. So clearly, we are going to slide down.

Q: How far will we hold 2900 or is it likely to be broken?

A: If this time we slide down and if we make lower highs, then there is no reason why 2900 will hold. The chances are that it would also be broken. It is certainly apparent now, irrespective of what the international markets do, we can simply postpone the inevitable, there is much more pain left and we will have to take it.

Q: As a Nifty trader, how do you position yourself? Are you comfortable taking a long position?

A: Not really. The market has failed to reach 3200, leave aside crossing it, we haven't even touched that. This gives the message that it is unlikely to work out. So, from now on, I am shifting my positions as a long trader to rather looking for the opportunities to go short.

Q: For the last couple of weeks, the FII buying seems to have picked up but would you put much stock by it?

A: No, I would not because all of this is reflected in the market and the Nifty clearly says that it is unable. This analysis should change for everyone. If we really cross 3200, then it would give us a clear and loud message. So rather than anticipate, till that doesn't happen, I assume that the market will slide.

Q: What do you think about banking stocks; would you still like any of them?

A: I like all of them technically. It is a different matter that they keep on breaking their support levels. This time again, we have seen a small rally. I don't really think that this rally will last because if the market turns soft, then banks will not outperform.

But the chances are that the banks would simply drift sideways and some individual banks could actually go against the market trend. So in that sense, banking remains a very interesting sector to watch, even for buying opportunities in a falling market.

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