Mkt in uptrend; buy on dips: Sudarshan Sukhani

"It is possible for traders to also move the stop loss to about 5,250, which will be the break even point," he said in an interview to CNBC-TV18.

Sukhani sees the market being in an uptrend, so one should wait for inevitable corrections and dips, which can be used to buy in, he added.

Below is the edited transcript of Sukhani’s interview with CNBC-TV18.

Q: I know it’s a no brainer to keep your long positions going in the market today but what kind of stop losses would you maintain?

A: I get worried when a trade becomes a no-brainer. In this case you have to be on the long side of the market, stop losses were at 5,200. Traders who are willing to take risks can simply keep that stop loss intact. But, it is possible for traders to also move the stop loss to about 5,250, which will be the break even point.

If the market does slid a 100 points then may be you should get out at break even. Although I am not doing it, but that movement of 50 points towards 5,250 is possible. The markets are in an uptrend, the idea should be -  we will have those inevitable corrections and dips, they will come. They should be used to buy in.

Q: You have long call on ICICI Bank .

A: ICICI Bank has been a favourite for some time now. We have been talking about buying it and saying that large private sector banks have the best charts. That still remains. Yesterday it made new highs for this uptrend which is a good sign.

The strength in the banking sector which we started seeing yesterday is going to be built upon. The banks will now probably outperform the Nifty. If that is so then ICICI Bank at current prices deserves buying.

Q: You have a buy on ACC for the day?

A: ACC represents the cement sector which has been outperforming for reasons which I don’t understand. But Ambuja has done extremely well and now ACC is doing the same thing that Ambuja has already done.

ACC is breaking out from a trading range. Yesterday it did breakout and made those new highs. Those new highs should be bought into especially when the entire sector seems to be gung-ho. It looks good.

So, for a day trader we will expect follow through for yesterday’s breakout. For a positional trader it is possible to buy calls or even futures in ACC and wait.

Q: Have chosen HCL Tech from IT?

A: It is one of the better performers in the four larger IT companies. It has moved up 10% which is okay. The bigger issue is that it has just crossed the Rs 520 threshold. Rs 500-520 was a very big resistance for HCL Tech. It wasn’t able to cross that. That it has done.

It also appears that the CNX IT is bottoming out at least in the short-term and there is a sense that apart from Wipro which is an underperformer, the other three stocks TCS , Infosys and HCL Tech would do well.

Today, HCL Tech’s breakout tells us that we will expect some follow-through. This market is following after a breakout. It doesn’t go back. We saw the Nifty breakout and then add 100 points. That should happen to most other stocks.

Q: From FMCG you have picked up Hindustan Unilever (HUL) for the day?

A: It has been a favourite. After a big gain on the back of news, in all fairness it had to, it is taking a period of rest. Yesterdays small narrow range bar on the back of big gains in the Nifty tells us that HUL is now willing and ready to participate in the rally again.

I would be a buyer in it. If it does breakout, there should be no hurry in exiting. It should go much more than we imagine.

Disclosure: I have no personal holding in the stocks discussed