See Nifty touching 5000-5050 soon: Sudarshan Sukhani

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

Q: It looks like we may play for a bounce back. How much would you give the market if indeed it does manage to retrace for its losses?

A: I am hoping it will retrace some of its losses, move up. The first logical target is 5,000-5,050. The Nifty should reach there in a day or two. That should come about without much effort. What happens from thereon is something that we cannot predict. So, we will wait for the market to begin planning after reaching that trading band.

Q: Dena Bank is in your buying list today?

A: Yes. Most banks have gone through a very deep correction; thanks to the State Bank of India ’s results and the markets were oversold. We have seen each of these banks start beginning a rally. Dena Bank was in a trading range for the last few days, so its correction was a little less than others.

It was also standing at a significant support level at Rs 77-78. So stock at support, stock in a trading range and now moving up, it’s almost a perfect setup for a buying opportunity. I am assuming that the Nifty will go up some more, so it makes sense to buy banks.

Q: Do you think Bata India has resumed its uptrend as well?

A: Yes. Bata has now made those new highs. Lifetime new highs must be bought especially in a stock, which is repeatedly doing this. In case of Bata we had a trading range that lasted for almost one and a half month. So, the stock is moving out of the trading range and into lifetime highs. Both qualify as buying opportunities. Do not worry about valuations in this case. Just go long.

Q: Suzlon Energy is good for more?

A: It is good for more because one has to see the context. It fell from Rs 30 to Rs 18, it has cracked 40% on a base of 30. so, there is a lot of headroom here. Suzlon touching Rs 18 tells us that it was a double bottom. It may have been because that was strong support or  a previous low. Bouncing from that level tells us that if not anything even a relief rally in a high beta stock like Suzlon could go to Rs 24 minimum and maybe Rs 27-28 easily.

Q: Godrej Industries was a strong performer yesterday?

A: This market is turning around slowly. It may be just for a relief rally. But Godrej came, dropped to Rs 225-230 which was a support level, so there was a decent correction from Rs 275 to Rs 230 and now one is seeing a bounce back.

One will find out whether it is a bounce back or a new uptrend starting in Godrej. In either case one should be long because support levels are holding. There is a target of Rs 255 on this stock which can easily be exceeded. 

Q: You have got buy on Power Finance Corporation (PFC)?

A: Yes, because PFC has been battered out of shape. It reached its pattern target of Rs 140-150 and after that it’s not falling anymore. It is more of a reversal trade. One doesn’t know how this is going to work out, but if it works out then it is a fairly high beta space stock for some unknown reason. So, a significant rally is possible for long only traders and the downside seems to be quite limited. Risk is low and incase it rallies, reward is pretty decent and high, it is available in futures. It is a buy.