Short RIL; buy ACC, Ambuja Cement, REC on dips: Sukhani

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Short RIL; buy ACC, Ambuja Cement, REC on dips: Sukhani

Sudarshan Sukhani of s2analytics.com says, after the big run yesterday, the market is consolidating. He is bullish on REC, ACC, Ambuja Cement, Balaji Telefilms and Hathway Cable. However, he is bearish on Reliance Industries, Titan Industries and Dish TV.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Rural Elect Corp See messages about Rural Elect Corp Rural Elect Cor BSE | NSE 29/05/12 Are Mutual Funds betting on Rural Elect Cor? Other Stocks in this news ACC | Ambuja Cements | Balaji Telefilms | Hathway Cable and Datacom | Reliance Industries | Titan Industries | Dish TV | Wire and Wireless (India) |

Sudarshan Sukhani of s2analytics.com says, after the big run yesterday, the market is consolidating. "That consolidation should end by a repeat of the uptrend."

He is bullish on REC , ACC , Ambuja Cement , Balaji Telefilms and Hathway Cable .

However, he is bearish on Reliance Industries , Titan Industries and Dish TV .

Also read: See Nifty moving towards 5300, says Violet Arch Capital Advisors

Below is the edited transcript of his interview with Ekta Batra and Latha Venkatesh of CNBC-TV18. Also watch the accompanying video.

Q: Would you suspect generally that we could see some hectic profit taking at the end of the week?

A: I think the profit taking occurred yesterday morning, almost immediately and we slipped 80 points from the highs. I would suspect that most of the profit taking is done and over with.

Now, the market participants are quite unsure of where the market is going, whether it's going up or whether it's retreating and going back into the bear market. That is the reason for today's still environment. It's quite likely that we can just close somewhere around the current levels and then see next week where we go.

Q: In which case, will you go into the weekend with long Nifty positions?

A: Yes. I have some minor very long positions built. After the big run-up, the markets are consolidating. That consolidation should end by a repeat of that uptrend. That's the normal way we look at the markets.

Currently, there are some mild small and long positions. If by the time the market closes and we have a failure of this rally or we see lower levels, I'll get out. Otherwise, I'll be carrying it forward.

Q: How exactly would you approach Reliance Industries?

A: It's a sell. It was a sell yesterday also. Reliance has done its bit as a small rally. That rally is over, it has lot of resistance. Reliance has a much lower downside target. So, it's a short selling idea. If you buy something else, you sell Reliance.

Q: I wanted to ask you about Titan actually. You have not been a votary of these kinds of stocks but we are beginning to see some people recommend a buy. Now that's of course for fundamental reasons. Are the charts giving you any hope?

A: No. When Titan was Rs 200, I had explained that it's breaking down from a major bearish pattern and we'll see significantly lower levels. We saw a 15% cut. Small rallies should simply be ignored. Titan, to my mind atleast on the charts as I see, is looking for a much lower level. So, I would not touch it at all.

Q: What about Balaji Telefilms?

A: It was in a trading range. From the last three days, it's going up consistently including today. That deserves a buying. Now, the only problem is that it's up on news. I don't understand the news. So, I can't really give you a detail comment. On the charts, it's a buy on dips.