Nifty may test 4720 today: Sudarshan Sukhani

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Nifty may test 4720 today: Sudarshan Sukhani

Sudarshan Sukhani, s2analytics.com says he would be a buyer today. “I expect the Nifty to test 4,720 today,” he adds.

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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 Sun TV Network See messages about Sun TV Network

The Indian market started 2012 on a flat note. Yesterday, the Nifty closed up 12 points at 4,636 while the Sensex shut shop at 15,517.

Sudarshan Sukhani, s2analytics.com says he would be a buyer today. "The international markets are little conducive for a relief rally. I expect the Nifty to test 4,720 today," he adds.

According to him, the Nifty has support at 4,600 and resistance at 4,800.

Also read: Nifty may test 4200 soon, says Darashaw & Co

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

Q: How would you approach the Nifty today?

A: I would be a buyer today. Yesterday, we had some kind of support at 4,600. 4,600 itself was not relevant as a number, but as a fact that that's the place where the market stopped. So, we have some support visible on the charts. The international markets are little conducive for a relief rally. I would be looking to buy.

Q: What kind of targets are you looking at?

A: There are two targets. The first, I assume, should be achieved today itself- 4,720. The second is the resistance at 4,800 where we went last week and then retreated. We could not cross 4,800. That should be the second target.

It's not easy for me to say whether the second target will be achieved or not. But, at this point, the momentum seems to be fairly decent for the first level and then an attempt to reach 4,800.

Q: Are you buying State Bank of India today in this upmove?

A: Yes. This is a falling knife's trade because State Bank has been a distinct underperformer. For the last four days, it is in a very narrow tight band, a narrow trading range. Normally, good stocks, when they go into a narrow range, are eventually going to breakout one way or the other.

Since my own sense is that we are looking at some kind of a small rally, the breakout in State Bank should be on the upside. So, if I am going long today, I am probably buying almost at the breakout point, which is the low also of the current move. It's a good trade on the long side.

Q: What about Sun TV ?

A: Sun TV is a buy. I have been upbeat on Sun TV when it has been in this range of Rs 250-300. Now, there are two opportunities in Sun TV. First, yesterday was a good day for it. It closed higher. Now, there is an upward rally towards Rs 300.

The second target for Sun TV is when it crosses Rs 300, it goes through a significant breakout and goes into an intermediate uptrend. So, traders can go and buy it now, look for a target of Rs 300, exit partially. Then if it crosses Rs 300, actually convert it into a position trade. So, there are two opportunities here.