New lows ahead for mkt, gold may fall to Rs 24,000: Sukhani

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The big news than the Nifty is gold for Sudarshan Sukhani of S2analytics.com. Gold cracked from Rs 28,300 per 10 grams, down 3.8% yesterday and fell 8% for the week. Gold further promises to come down all the way to Rs 24,000 per 10 grams levels, he pointed out.

Talking about the Nifty, Sukhani said that the market continues to be bear, even the rallies. "The Nifty will see new lows sooner rather than later," he added.

From the pharma space, while he doesn't suggest buying Orchid Chemicals as a fall through on the downside is expected, he advised not to sell Sun Pharma as some new highs are expected soon.

Sukhani recommended a buy on Dabur , and a sell on Arvind , United Spirits  and Tata Chemicals  with a difference.

Here is the edited transcript of his interview to CNBC-TV18.

Q: What do you expect to see on the Nifty today?

A: Since January this year, I have been talking about 4,000 levels and we need to see whether it works out. However, the big news is not the Nifty, but it is gold. Gold has cracked from Rs 28,300 per 10 grams, which was a very significant support level.

Now, it promises to come down all the way to Rs 24,000 per 10 grams, but might take its time. For the Nifty, the bear market continues, even the rallies. The market has been very tepid. We will see new lows sooner rather than later.

Q: You have a sell on Orchid Chemicals. Where is that headed?

A: It's headed down. Over the last few days, some of these charts are making very bearish patterns, after having fallen so much, but it has got me worried. Orchid is heading towards Rs 100 levels. I wouldn't buy it. Yesterday, it made a new low. Now, I can expect a lot of follow-through on the downside. The trade is for day traders. Sell on every occasion, on rallies and small minor break down also. It will go much lower.

Q: The Tata Group stocks saw a bit crackdown yesterday. You would sell Tata Chemicals today?

A: I would, but with a difference. Tata Chemicals has been in some kind of an uptrend. It's not in a bear market like the others. We are probably heading towards a deep correction in the stock. For short-term traders, the deep correction is also a selling opportunity. At some point, there will be brief rallies. One should take their profits and get out whenever possible. It's different from Orchid Chemicals. For Tata, I have a target of Rs 320 levels. If you get it, you must get out. In Orchid, you could become a position trader.

Q: Arvind Mills is on your sell list too. How do the charts look there?

A: When Arvind came down to Rs 85 levels, I explained that this is not a buy on dips opportunity, but is midway in an ongoing downtrend. It has already cracked the support levels of Rs 80. Arvind Mills was declining yesterday. We can see a strong downward momentum today. There will be some gap, but in spite of that, there is a trade for the day for position traders. The eventual target for this pattern should be somewhere around Rs 60 levels.

Q: Sun Pharma bucked the trend yesterday. Would it continue today as well? Would you buy that?

A: I would certainly not sell it. There are some stocks which are good on the charts and are certainly not selling opportunities. If the Nifty fell 100 points today, then Sun Pharma will not be left aloof. If there is any opportunity to go long in a stock, Sun Pharma qualifies for that. I would be a willing buyer if the market gives me sign that it will go down any more. Sun Pharma should see new high sooner or later, so it should be on your buy list.

Q: Another weak chart is United Spirits today. How should one play that?

A: Yesterday, it made new lows. After having cracked so much, they promise further cracks on the downside. United Spirits will g down much lower. It's difficult to keep on rattling the downside targets, but charts are not conducive for most of them. Yesterday's new low should see significant follow-through today, not just minor follow-through. United Spirits is a sell during the day. For position traders, take a position and look for something like Rs 450-500 levels by the time the bear market ends.

Q: What is your view on Dabur?

A: Dabur is on my buy list. Dabur has a very mild and tepid correction on the downside. From Rs 120 levels, it came to Rs 95 levels, which is far superior to what other midcaps have done. While we have seen a decline, this decline is probably a correction in an ongoing bull market. Dabur has seen significant rallies also. For the last six weeks, it's making a trading range and trying to push out of it. Dabur is a buying opportunity just as Sun Pharma is. One shouldn't buy it at Rs 920 levels, but wait patiently for the inevitable rallies to come also.

Also watch the accompanying videos for the complete interview.