May 08, 2013, 10.59 AM | Source: CNBC-TV18

Nifty heading to 6110, maintain long positions: Sukhani

In an interview to CNBC-TV18 technical analyst, Sudarshan Sukhani of shared his reading and outlook on the market.

In an interview to CNBC-TV18 technical analyst, Sudarshan Sukhani of shared his reading and outlook on the market.

Also read: India Inc confident as mood in EU, globe worsens according to YPO survey

Below is the verbatim transcript of Sukhani's interview with CNBC-TV18:

Q: For an intraday target, how should a Nifty trader approach the market?

A: We still want to be long in the market. Yesterday, we suggested buy in the morning and if the Nifty closes above 6,000, carry some positions home. If the traders have done that, they are going to get the advantage of a gap-up today.

The bias remains on the long side. Maintain your long positions if you are carrying them. For intraday trading, look to buy the Nifty not at the open -- today we will get some consolidation.

The basic idea is that the market thrust remains up, momentum is on the upside. We are now approaching 6,110, which was the year high. If the Nifty crosses that then this entire scenario of the intermediate trend also changes. We will all watch with interest what happens.

Do not go short, this is not a market where you want to sell, stay on the long side.

Q: Do you have a buy on Bombay Dyeing and Manufacturing Company today?

A: It has not come in our list because Bombay Dyeing and Manufacturing Company, together with the other textile companies, was falling relentlessly. You cannot short it. It is not in the F&O anymore. Two of the three stocks Raymond and Century Textiles and Industries have now given rallies. Both came in our buy list over the last 7-10 days.

Bombay Dyeing and Manufacturing Company is giving us the same pattern that Century Textiles and Industries and Raymond have given. It has built a base and it is on the verge of breaking out. If we buy now, we could be participating in the breakout. We are literally buying at the lows. The sign suggests that a breakout is eminent. If it does not work today, hold on the position, it will work tomorrow. You are buying equities in any case. It is worthwhile looking at the entire scenario.

Q: You have a buy on IFCI as well. Is that a risky call because it has had one up day, one down day?

A: All trades are risk calls. Short-term trading is risky inherently. We had a buy call on IFCI earlier. It was making a flag and then it broke out of that bullish flag. It is making a similar flag now and it just broke out yesterday. That tells us there is lot of momentum on the upside. This is not a stock I would even consider putting in my portfolio or even for a position trade. Momentum does strange things. This is a perfect buying opportunity. A flag breakout, higher levels are likely to come. All these up and down days that you refer to were part of the flag. That is behind us now.

Disclosures: Sudarshan Sukhani has no holdings in any stocks discussed.

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