Nifty may make big move in next 1 month: Sukhani

The Nifty has managed to stay above 5,300 levels and if there is no major bad news then it may continue to remain above that mark, he told CNBC-TV18.

"The trade for today is on the long side. Going ahead, we will see a big move on the Nifty in the next one month," he added.  

Below is the edited transcript of the interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: First a trading strategy on the index after what has been a very choppy week for us?

A: Yes it’s been a choppy week and if this continues for a few more days there will be almost no traders left in the market. I hope that doesn’t happen. The trend is still up, although it’s now silly to say so because there is no trend infact but for whatever it is worth the short term trend is up. We did breakout out of that trading range of 5200-5300 and we are floating above 5300. Maybe today also if things don’t go bad we’ll still remain above 5300. So the trade is to remain long.

The Nifty is in a very narrow range, it can not stay here. That’s the only certainty that this market has today, it is going to move out. I don’t know whether it will move out. First we had 5300, now we have 5350 as the barrier. I don’t know if it will go above or come back all the way and breakdown below 5200. The trade currently is on the long side but I am very open. If the market decides to move down that’s what we’ll have to do but we’ll get a big move in the next one month, one just needs to be patient.

Q: You think Crompton Greaves is a weak looking chart?

A: It has become a weak looking chart. Crompton had all the right things going for it and I thought maybe this is now entering a new bull market of its own after that big decline, so a lot of the excesses were washed away. Now it seems its not sustaining, lot of stocks are not sustaining. The Nifty itself is confusing but Crompton Greaves is a short sell. If not anything it will probably come down lower where it becomes a buy. Or if it is entering again a bull market, if the rally was just a relief rally then it will see lower levels  . In either case downside values will be seen, so it is a short sell here.

Q: Fortis is a better looking chart you think?

A: Now it is a better looking chart, earlier Fortis was a weak looking chart. It went through a correction, made lower highs, lower lows. Now it has broken out of a fairly bullish head and shoulder pattern that tells us that the decline is over and this is a reversal pattern, and it’s now embarking on a new up move. It has also done all the right things on the upside.

Yesterday it gained a lot of traction and that traction was not a one day move, it has come on the back of a breakout from a bullish pattern. So Fortis is not just a day trade, it’s a good idea to go long today. It’s also probably something that you want to hold on to.

Q: Godrej Industries has been trending quite nicely, that one you think has more strength on its charts?

A: It does have more strenght on the charts. Firstly it’s making those new highs. Now for the last 3 days, it’s in a very narrow range, consolidating. Stocks can't consolidate for long while the index can do that for much longer. This consolidation is going to end and because of the strong uptrend that we are seeing in Godrej, it’s reasonable to assume that it will break out on the upside and continue it’s up move. It’s an excellent stock to be in; it’s a buy on dips stock. I have explained earlier it’s in the same position as Hindustan Unilever was when it was trading at Rs 300.

Q: Petronet is a sell for you today?

A: Yes, I had thought that after that big decline on IGL Petronet also fell and maybe there will be a buy on dips opportunity but that has not happened. Petronet has now actually weakened, it has come back to the levels at which it closed on the IGL news day, so there has been no rally essentially. If there is no rally, if the market is responding to bad news, if support levels are willing to be broken then we should be short. At the worst, we will have a correction because that Rs 155 level is now being taken out on the downside, so that correction should be tradeable.