SENSEX NIFTY
Jun 20, 2012, 10.45 AM IST | Source: CNBC-TV18

Nifty still stuck in 5040- 5140 range; buy on dips: Sukhani

Technical analyst Sudarshan Sukhani of s2analytics.com expects Nifty to breakout its 100 points trading range of 5,040- 5,140 going ahead. "This range has kept the Nifty locked for the last nine trading days. It’s going to breakout one way or the other, so a breakout from this range will be the bigger trade," he said in an interview to CNBC-TV18.

Technical analyst Sudarshan Sukhani of s2analytics.com expects Nifty to breakout its 100 points trading range of 5,040- 5,140 going ahead. "This range has kept the Nifty locked for the last nine trading days. It’s going to breakout one way or the other, so a breakout from this range will be the bigger trade," he said in an interview to CNBC-TV18.

Meanwhile, he has suggested traders to buy on dips and intra-day breakouts. However, if the Nifty falls from here on, Sukhani is not looking short it. 

Below is the edited transcript of Sukhani’s interview with CNBC-TV18. Also watch the accompanying video.

Q: We managed to get back to 5,100, how would you trade the index today?

A: I would still be a buyer and that has been consistent. We want to buy the dips; we want to buy any intraday breakouts. So we need to have a clear view that the trade is going only on one side that is on the long side. If the market decides to slip then I step aside. I am not looking to go short in it.

But interestingly we now have visible trading ranges to talk about. We have about 5,040 on the lower end and 5,140 on the other hand. This 100 point range has been keeping the Nifty locked for the last nine trading days. It’s going to breakout one way or the other, so a breakout from this range will be the bigger trade.

Q: BPCL is on your buy list today?

A: Yes, it’s on my buy list. BPCL is at a point at which it is now breaking out. It had made trading ranges earlier and now those ranges are on the verge of a breakout on the upside. So I am going long in BPCL in anticipation of a much bigger move.   

Q: You have chosen to buy Polaris from the midcap IT bunch?

A: Polaris had a massive bear market. It fell from Rs 220 to Rs 100 and that is not just a decline but that now seems to be getting over. Polaris made a double bottom. It’s come out of that double bottom. There is a visible and clear reversal pattern. Yesterday, there was some follow-through and today one can expect more gains in Polaris. For positional traders Polaris is a good idea. 

Q: Why you have a sell on Hexaware Technologies ?

A: Hexaware is turning around. It is now making something which I would consider a distribution. So the rally in Hexaware seems to be over. Sometimes the distribution takes a lot of time  but often sharp spikes are seen on the downside and yesterday also that happened. Once this distribution is over I would expect Hexaware to slide significantly lower.

Today the stock is willing to be pushed much lower than the broad market suggests on the upside. So Hexaware is a short sell as a hedge and also independently as a positional trade. 

Q: You are selling Orchid Chemicals and Pharmaceuticals ?

A: I have been selling Orchid Chemicals for a long time, including the big declines we saw on news. Orchid went into a small trading range and it has broken down from that trading range, not up and that is remarkable because most stocks are now making these ranges and going on the upside. So whatever news was there is not yet fully adjusted in the prices. The chances are it will go below Rs 100.

My targets are Rs 110 for the short-term trader but in a market where broadly stocks are going up it’s a nice idea to have one-two stocks that are relatively weak on the short side.

Q: Lupin is a buy?

A: Lupin is more of a buy, in the sense that it has come to Rs 520 which is where significant support comes. Lupin is an excellent stock, a very strong pharma stock. So at support, I would expect it to rally on the upside and if that happens then one is buying almost at the lows of a decline. But if this support breaks decisively and that is why we need to use a stop loss then Lupin’s chart will change. I am assuming that this support will hold and we will see a rally. So it’s worth getting into.

Q: You have a buy on Alstom Projects ?

A: Alstom Projects is a stock that has fallen, gone through a deep correction and made a very bullish reversal pattern on the downside. We are seeing number of such stocks doing that. Once this bullish pattern is complete and yesterday it confirmed that pattern, I would expect a new uptrend to start for Alstom Project. So it’s a good stock for today. Yesterday’s big gains should see follow-through today and eventually much higher levels are possible. 

1 2
Set email alert for

ADS BY GOOGLE

video of the day

Auto, bank to do well; L&T good 2-3 yr story: Alchemy's Ved

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.