Feb 05, 2013, 11.09 AM | Source: CNBC-TV18
In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com shared his reading and outlook on market and specific stocks.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Below is the verbatim transcript of an interview aired on CNBC-TV18.
Q: Difficult couple of days for the index, as a Nifty trader, what should the approach be?
A: Last two days we have been talking about going short in the morning, selling into strength and that has worked out. We have not carried positions because the markets were still indecisive. Today, given what the markets are doing all over the world, the SGX is suggesting our charts have already fallen below 6,000; the last level of 5,980 is likely to be taken out. So, positions should now be taken on the short side. One has to understand that the market can turnaround on a dime. It seems very unlikely. However, the possibility exists. The short-term trend was down and it is getting confirmed. The intermediate trend is on the verge of moving to the downside. Therefore, the trade now is to go short and if the market remain below 6,000, carry the short forward. So, essentially we are now creating a positional short.
Q: Are you getting back to the defensive because you were quite bearish on Titan Industries earlier. You started gravitating back to those kinds of names?
A: Yes. It is not for me to decide. The charts have started suggesting that defensives are now beginning to perk up and see buying opportunity. So, that is the broad market and not just me.
Titan is now a buying opportunity. The big decline in Titan is over. A small range was a double bottom. That double bottom was confirmed and a breakout has occurred. The problem here is that if the broad market, if the Nifty is going to go down, open lower and persist in a downtrend then buying should be done only when one feel that the stock is not going down. This is not easy to do but when one is doing short-term trading, it is a good advice. So, traders should be alert. Here is a buying opportunity. We will go once we see outperformance in the stock.
Q: Pantaloon Retail is a sell this morning?
A: Yes. Pantaloon’s uptrend is intact but even inside an uptrend one will see deep corrections and this market is providing the opportunity for many of these momentum stocks to go through dip corrections on the downside. So, Pantaloon’s breakdown from a strong support level suggests there is much more follow-through on the downside. In the morning any sign of a minor strength, sell Pantaloon in terms of Futures or even in terms of buying Puts or selling Calls. There are many opportunities. However, the trade here is on the downside. A decent profit is possible.
Disclosure: I have no holdings in the stocks discussed.