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Moneycontrol » News Center » Stocks » Expert Advic
Nifty to reach 4700 if it crosses 4400: Sudarshan Sukhani
Published on Fri, Jul 17, 2009 at 10:00   |  Updated at Fri, Jul 17, 2009 at 12:01  |  Source : CNBC-TV18
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Sudarshan Sukhani of Technical Trends said the short-term market trend was up. The decline that the market saw at 3,800 is over now, according to him. The momentum favours the bulls, he said, adding, “The key here is that you should be on the long side and not look at levels.” If the 4,400 resistance level is crossed, Sukhani said, it was easy to reach 4,700.

Here is a verbatim transcript of the exclusive interview with Sudarshan Sukhani on CNBC-TV18. Also, watch the accompanying video.


Q: Is this the rally which will carry the Nifty back to 4,600-4,650 or will stop before that?

A: It is difficult to make a call but the short-term trend is up. As far as it remains up, we never know. The fact remains that a downtrend was stemmed almost exactly at support. We were talking of 3,800 and just 100 points short of that, that decline is over now.

The momentum favours the bulls. The key here is you should be on the long side and not look at levels. 4,400 is the first resistance and if that is crossed I think quite easily we will reach 4,700.

Q: How are some of these metal stocks looking technically?

A: I am not very upbeat on metals. If this rally is going to continue, it will be led by infrastructure, construction and IT. I don’t think metals are going to outperform. Within that SAIL looks the best of the charts. It does suggest that it is consolidating, it fell the least. The second is Sterlite, which is promising that even after the short-term declines, the patterns are much better. I am downbeat on Tata Steel and Hindalco.

Another dark horse Nalco which again suggests it has gone through deep correction and maybe there is momentum and a bounce back there. Overall, metals are an underperformer.

Q: Some of the power stocks came off yesterday—technically though how are they looking on your charts—PFC, JP Hydro, Lanco etc?

A: Lanco is looking much better than the others. It has done a very sharp rally. It is only correcting but for most of the other power stocks, I don’t think there is much steam in it. It was more of a euphoria that we saw for two days. That has ended. So power again remains an underperformer in my list whether it is Reliance Power or Tata Power or the other stocks.

One of the dark horse is CESC. What is happening is that the midcap stocks are suddenly coming up. All the stocks that were beaten and bruised in the recent correction, these are the stocks that are suggesting some momentum. CESC is one such stock. It is a trading stock and the idea is also only for traders.

Q: Have you looked at GSPL’s chart or Aban Offshore?

A: Aban is a very disappointing chart. It has fallen—cut down by 50% in one month. Now, that’s not a correction, so I think it is best to stay away from Aban Offshore. GSPL is a very different story. It has built a very good base. It has broken out. That’s a stock you really need to own in your portfolio. It could be a spectacular success—a multi-bagger sometime.

Q: Have you looked at GSPL’s chart or Aban Offshore?

A: Aban is a very disappointing chart. It has fallen—cut down by 50% in one month. Now, that’s not a correction, so I think it is best to stay away from Aban Offshore. GSPL is a very different story. It has built a very good base. It has broken out. That’s a stock you really need to own in your portfolio. It could be a spectacular success—a multi-bagger sometime.

Q: Two more stocks for you—Gujarat NRE Coke and Mahindra Satyam—if you had a look at those charts?

A: I don’t track Mahindra Satyam anymore. I think that Tech Mahindra has a much better chart, so at all you want to go into that sector or that group, Tech Mahindra is a buying opportunity even at current levels. There is much bigger room ahead. I don’t track the other company also.

Q: Some of these auto stocks have been trending well, things like Bajaj and Maruti made 52-week highs in trade yesterday. Technically, are they looking good for more?

A: Yes Maruti is. Maruti has made life time highs. When Hero Honda crossed Rs 950, it moved up 60%. So you have to buy Maruti and not worry about corrections. This is a stock that should go places. I am not so upbeat on Bajaj Auto but Maruti is again a portfolio must.

Disclosure: I have delta neutral positions in Nifty and investments in shares.

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