Jun 11, 2013, 12.18 PM | Source: CNBC-TV18

See buying opportunity beyond 5900 in short-term: Sukhani

At this point market is choppy in the short-term. The positional trades are short and should remain so, technical analyst, Sudarshan Sukhani, s2analytics.com said.

In an interview to CNBC-TV18, Sudarshan Sukhani, s2analytics.com shared his reading and outlook on market and specific stocks.

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Below is the verbatim transcript of Sukhani's interview with CNBC-TV18.

Q: How would you approach the start in the red today as that seems to be the indication from the SGX?

A: The index is starting at the red and this is the reason why we have maintained two different trend following mechanisms. The intermediate trend was down and we were saying that we have short positions. For the short-term trend the sense was that maybe we are seeing a pullback.

Yesterday we could not buy because the pullback never started. It opened with up gap and then did not sustain. The gap started getting filled.

Today the signs of a pullback have vanished. Now we have strong resistance in the 5,900 area that is now acting as resistance and the Nifty becomes a buying opportunity for short-term only beyond that. So, how do we trade the short-term? It is not easy because after 40 point gap down it is not always easy to short. At this point market is choppy in the short-term. The positional trades are short and should remain so.

Q: You see more damage on the charts of IndusInd Bank ?

A: IndusInd Bank has been a distinct outperformer and earlier calls that the stock is topping out have been wrong. The same patterns have emerged again, a sense of distribution, a pattern called a descending triangle and a breakdown suggests that intermediate top is probably in place. It is a stock worth selling into and going short and the reason is that whenever this works out it will be big time and maybe we have to take small losses if at all.

Q: You have Reliance Power in your sell list.

A: Reliance Power started its decline from Rs 80. It continuously fell and for the last six-seven days there was a mild rally. That rally seems to have taken the shape of a flag, a bearish flag, which suggests that much more downside is available in Reliance Power. It is not just a day trade, it is a positional trade. One could take a short position and sit tight.

Disclosure: Sudarshan Sukhani has no holdings in the stocks discussed.

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