Jul 02, 2013, 01.08 PM | Source: CNBC-TV18
Market is now in a period when it is not giving any sign and the charts are quiet, technical analyst, Sudarshan Sukhani, s2analytics.com said.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Below is the verbatim transcript of Sukhani's interview with CNBC-TV18.
Q: More to go for this pullback or you are getting a bit cautious on the Nifty at current levels?
A: This is one of those periods when the market is not giving any sign and the charts are quiet. The only sign we have is momentum and momentum is on the side of the bulls. However, is there more to go. I cannot say because there are no signs of exhaustion. So, till something happens to the contrary, I am assuming that there is more to go.
We will not look at numbers and resistance. This rally has broken a lot of these resistance levels. So, I will not say it will stop here. We will follow this uptrend while it lasts.
Q: You have chosen to buy Reliance Capital today?
A: Yes. Reliance Capital had a large range move yesterday. That large range move suggests that there is strong momentum. It was way out of the ordinary. So, today we do not want to rush and buy, in fact that applies to most of our buying ideas today. However, during an intraday dip or an intraday consolidation in Reliance, day traders should be looking to buy it. This big move doesn't get exhausted in one day. It continues at least for sometime and then it gives sign of exhaustion. Therefore, Reliance Capital is just starting that big move and we should be in it on the long side.
Q: Why have you chosen Aurobindo Pharma in our buy list?
A: Aurobindo Pharma has gone through a sharp correction, built a base and has now broken out. So, we are looking at stocks that have the potential to move up even if the Nifty goes into a hurdle or goes into a trading range. Aurobindo Pharma had doubled itself so the trend in Aurobindo is up. We are trying to catch the uptrend, a renewal of that upmove.
Disclosure: Sudarshan Sukhani has no holdings in the stocks discussed.