Nifty is in a bear market now: Sudarshan Sukhani

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Nifty is in a bear market now: Sudarshan Sukhani

Yesterday, the Nifty closed below the psychological 5,000 mark, while the Sensex closed at 16,461, down 315 points. Sudarshan Sukhani, technicaltrends.com says, the Nifty is in a bear market now.

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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 Sesa Goa See messages about Sesa Goa

Yesterday, the Nifty closed below the psychological 5,000 mark, while the Sensex closed at 16,461, down 315 points. Sudarshan Sukhani, technicaltrends.com says, the Nifty is in a bear market now.

According to him, the trend is on the downside now. "The trade has to be on the short side."

He further says, the Nifty will close December below 4,900 and advises investors to buy 4,900 December Put.

Market decimated: Here's what you should be watching out

Below is the edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying videos.

Q: What is your trading strategy on the Nifty now?

A: The Nifty is in a bear market. The decisive break was below 5,200. The trend is down. That is clear. The trade has to be on the short side. I don't think any other trading effort should be made.

If you want to go long, it will be high risk trade and low reward trade. I have already suggested that the buying of 5,000 Puts was a good idea, earlier 5,100. Now, you can buy 4,900 December puts. That should make money. I expect December to close below 4,900.

Q: What is your take on Sesa Goa now?

A: Sesa Goa has been extremely weak. It broke down from a trading range and its lows were Rs 189. It's now within striking distance of making new lows. I think once the new lows breach, it will go significantly lower. So, Sesa Goa for today is a shorting opportunity. I think traders can also buy puts on this; all options should be done for December.

Q: What about Syndicate Bank ?

A: Banks are on the verge of a big decline, it hasn't started yet. Syndicate Bank is at the point of breaking down from a three months trading range. I expect it to breakdown. I don't think its going to bounce from here.

So, my view is that the breakdown is imminent. Once it falls below that level of Rs 99-98, we can see a flood on the downside. So, Syndicate Bank at current levels is fairly favourable trade to take on the short side. Yesterday, it was down; today we can see lot of follow-through.

Q: What about Wipro ?

A: Wipro is more of a trade that I expect now to turnaround from up to down. It was not an ongoing bear market, but Wipro's rally seems to be over. Whatever happens whether it enters a bear market or enters a correction, there is money on the downside now. So, a small distribution pattern is breaking down. Therefore, Wipro is a sell. For Wipro there is a caveat that don't expect too much because it could be simply be a correction, but the trade is on the downside.