Technical analyst Sudarshan Sukhani of s2analytics.com sees yesterday's strong upmove by the market as a sign that the correction is over.
Technical analyst Sudarshan Sukhani of s2analytics.com sees yesterday’s strong upmove by the market as a sign that the correction is over.
Speaking to CNBC-TV18, Sukhani says that the market has seen a bounce from its lows, meaning it has revered its patterns. “The pattern was confirmed in two different ways; first by the Nifty itself and second by a lot of the index heavyweights making new highs for this uptrend, which means they are at levels above the 5,350 level of Nifty,” he explained.
From here on, Sukhani expects the market to continue to remain choppy, but says the Nifty will start its move towards 5,200.
Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee.
Q: Any signs that even in the near term the market is attempting to breakout of this range?
A: It appears so. Yesterday we had a bounce from lows and that was a bullish reversal pattern. That pattern was confirmed in two different ways; first by the Nifty itself and second by a lot of the index heavyweights making new highs for this uptrend, which means they are at levels above the 5,350 level of Nifty.
So yesterday we went long. I would assume that the correction is over. The correction boundaries were 5,100 to 5,150. From here, if we chop around few more days or decisively break over 5,350 the market will tell. But we are pushing towards that.
Q: You have ICICI Bank on the buy side?
A: ICICI Bank went into a consolidation rather than a correction after the big rally in banks. The Nifty corrected 180 points but ICICI Bank did not. It just moved around and yesterday it broke out to new highs for this uptrend. That is bullish in different respects. ICICI Bank will be an outperformer and that seems to be working out. So today assuming that the market gain more traction even after the gap up, ICICI Bank should be a big winner.
Q: You are bearish on Oriental Bank of Commerce ?
A: Yes. We were suggesting one should go for Bank Nifty as a long or a short idea rather than individual banks because buying the Bank Nifty is easier. It is becoming very difficult to pick on independent public sector undertaking (PSU) banks or others for buying. Oriental Bank of Commerce is fairly downbeat. Yesterday it broke down from support levels after a rally but if the markets are supportive today the stock may not collapse. But it still remains a short selling idea. Assuming the markets turnaround, do not cross 5,300, Oriental Bank certainly would be in a much deeper decline.
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