SENSEX NIFTY
May 28, 2012, 12.30 PM IST | Source: CNBC-TV18

Nifty in 4800-4950 range this week, buy on dips: Sukhani

Technical analyst Sudarshan Sukhani of s2analytics.com has a mildly bullish stance on Nifty and expects it to be in the trading range of 4,800-4,950 for the entire week. Within this trading range one should look to buy dips, he suggests.

Technical analyst Sudarshan Sukhani of s2analytics.com has a mildly bullish stance on Nifty and expects it to be in the trading range of 4,800-4,950 for the entire week. Within this trading range one should look to buy dips, he suggests.

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

Q: What is the trading call for the Nifty at the start of this week?

A: I am mildly bullish. The Nifty is in a trading range so a trading range can go either ways and in fact it need not go anywhere. We can still remain in 4,800 and 4,950 for the entire week. That is a possibility. Within this trading range I would look to buy dips, which seems an easier trade to take including today.

So today there is a mild bullish bias. Unless something happens I expect this week to continue in the same fashion. It does appear that 4,700-4,800 support zone is fairly strong even if it is going to break it won’t do that so easily and it may not break at all.

Q: Exide is in your buy list today?

A: Exide has been in some kind of a bear market of its own, that seems to be getting over. On Friday we saw a sharp rally in Exide and that rally came on the back of a trading range that was continuing for almost three weeks. So there was a big decline, a trading range that trading range has proved to be accumulation. I think Exide now is going to see follow-through on the gains it saw on Friday and probably is turning around. We are seeing a reversal of trend in Exide and that’s interesting for bulls.

Q: You like the chart of LIC Housing Finance as well?

A: LIC Housing Finance is giving same pattern; after a minor decline, so the corrections were shallow and that tells us that the stock has lot of intrinsic strength technically. Then we had a trading range where the corrections ended. Now LIC Housing is on the verge of breaking out of the range. It hasn’t done so but internals inside the range suggests it’s a matter of time before it moves up. So it’s a good buy at this current level.

There is a modest target of Rs 250 but once Rs 250 is touched and after it is crossed we could see new highs. It’s something traders should be long in.

Q: You are selling HPCL this morning?

A: Yes, it is a little surprising why Hindustan Petrol’s charts are so different from BPCL . HPCL never really saw that handsome rally that BPCL went through maybe because of oil interests or whatever. Now it’s turning around. It has been in a consolidation, that consolidation seems to be breaking down. So this is one stock, at least for an intraday trade its worth looking and going short in. I don’t know about big position but for a couple of days it’s a shorting idea.

Q: How about something like Jet Airways ?

A:Jet Airways is in a bear market. It does appear that the uptrend is over. But we saw a rally from Rs 280 to Rs 320-330 recently. That rally was probably an upward flag which is continuation of a downtrend. So a final visit to Rs 280 or even lower is possible in Jet, although that doesn’t have to come today because today, the targets are much more modest around Rs 300-302.  But eventually even a break to Rs 280 and even a breakdown is possible.

Q: You have picked Sobha Developers from real estate space as a weak chart?

A: Yes it is relatively weak in two senses. Independently, it’s broken below Rs 300 and second, when we compare it to other real estate peers like DLF , Indiabulls Real Estate , it is underperforming. So Sobha Developers is a short-term sell, it is probably an intraday sell. Sell on rallies, wait patiently and cover in the evening. For intraday traders there some points to be made, not just today but for a number of days.

Q: DCB from banking space that is a buy today?

A: DCB is a buy. It has fallen from Rs 50 to Rs 38. At Rs 38, it started building a small base and now it is just breaking out of that base. So it does appear that DCB’s decline, the bear market which we saw in it is probably getting over. These are reversal pattern that suggests that a trend change is in the offing. If it works out there will be significantly bigger gains here. But here at this point we are looking at Rs 41- 42 and even that is good in terms of percentages.

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