Mkt to be choppy; see resistance at 5230-5250: Sukhani

110609 Investors following Larsen. Share this News with them.

0

Like this story, share it with millions of investors on M3

Mkt to be choppy; see resistance at 5230-5250: Sukhani

Due to the decent rally in the market the past few weeks, Sudarshan Sukhani of s2analystics.com expects the market to consolidate a bit.

Post your opinion here

 

0

Tweet

Share on Tumblr

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 Larsen See messages about Larsen

Q: There's been a smart move that we have seen on the rupee as well. Technically how are you positioned on that?

A: Technically the support was at 49.50 or 50.00, but the rupee seems to be breaching that support. Once the rupee gets stronger, support levels are getting broken for the dollar I don't have a view on it. It's much better now for the market to complete its down trend and then see where we go from here.

So at this point, I don't have a view at all on saying that this market is going to bounce back, the dollar is going to bounce back. We will just have to wait and see.

Q: Would you buy Larsen ?

A: L&T yes, most blue chip stocks are on buy list. I am saying this generally because you have to also be a little choosy on when to buy. The market is going to gap up, and if it does you don't buy L&T then; you still wait patiently.

L&T has more upside, its now building a new bullish pattern. It already completed its target at Rs 1300; the next targets are now coming in place. So you want to buy L&T even on intraday trades there is only one direction up for the day, for a swing trade Rs 3060-3070 could be a fair target.

Q: How about Union Bank ?

A: Union Bank is a buy. The reason is that it fell the day before and then rallied intraday quite substantially. So no matter what the results, the market is giving support at lower levels. But we have a choice among banks. So independently Union Bank is a buying opportunity but surely I feel Axis, ICICI are probably better opportunities.

Q: For Sesa Goa , would you say there is more after the 6% move?

A: Yes it's just started. Significantly more upside is there, a bullish pattern has been completed and confirmed and Sesa Goa is going to go to Rs 250 eventually. But of course the targets for an intraday trader or a short term trader will be much lower maybe Rs 215 but if you are a position trader you want to buy it and keep it.

Q: Would you be cautious on United Spirits as well?

A: I would be very cautious on that one irrespective of the rally we saw day before. Some stocks will rally sometimes and that was a good day for every stock and then we had F&O expiry also, a lot of intraday adjustments are done there. So I would be extremely cautious on United Spirits.

I don't really need to sell it because if I am upbeat on the market then short selling is not a good idea on any counter or any share but if it all the first signs of weakness, the first stock to be sold would be United Spirits.

Q: Reliance Infrastructure has had a 45% run all of last series, has the time come to sell that stock now?

A: Yes it has inspite of that very big monster rally we saw day before. So we wait patiently, we don't sell it immediately. But again just like United Spirits the first signs of intraday weakness and we want to take a position because if this market is going come down even correct deeply, United Spirits and Reliance Infra are going to be major players in that decline.