See Nifty holding 5100; shorts will liquidate: Sukhani

Technical analyst Sudarshan Sukhani of s2analytics.com sees Nifty holding the support level of 5,100. So, he expects short positions to get liquidated if Nifty manages to do that.

One can consider taking long positions if the market rallies in the day ahead, he suggested.

Below is the edited transcript of Sukhani’s interview with CNBC-TV18.

Q: What are you expecting to see on Nifty this morning?

A: I am expecting to see 5,100 support hold, which means that the short positions that we build up will be liquidated in the morning if that support holds on. Then after remaining without a position we will try to see if markets are going up, rallying or remaining steady in which case we will consider long positions also.

Q: You are staying with your shorts on the PSU banks, particularly Allahabad Bank ?

A: Yes that is weakest of the lot. We have seen that the bank index has been moving in step with the Nifty which is fairly weak. Even assuming that the Bank Nifty starts rallying the PSU banks will be the last to do so.

Allahabad Bank on back of yesterday and Friday’s move, continues to remain a short sell and in a choppy market we have opportunities on both sides. This one is on the short side very clearly.

Q: There was bit of traction we saw in sugar names, what would you do with Balrampur Chini ?

A: The traction represents a trading range which is on the verge of breaking out on the upside. So in anticipation,  I would be willing to go long in Balrampur Chini. Of the three major sugar stocks that is Balrampur, Shree Renuka and Bajaj Hindustan, this one has the best charts in the short-term, so it is far better to focus on Balrampur. Although Shree Renuka Sugars  would also move up if the sugar pack moves up. Here is a buying opportunity for intraday traders as well as for people who want to buy options for the August series.