 Short-term trend is still up: Sudarshan SukhaniPublished on Fri, Jan 13, 2012 at 08:22 | Source : CNBC-TV18 Updated at Fri, Jan 13, 2012 at 11:06 25552 Investors following Apollo Tyres. Share this News with them.
Yesterday, the market ended on a weak note. The Nifty ended at 4,831.25, down close to 30 points. The Sensex fell 138.35 points to close at 16,037.51. Sudarshan Sukhani, s2analytics.com says, the short term-trend is still up. "Trader can take long positions," he advises. According to him, 4,800 is a significant support for the Nifty now. If 4,800 is breached, he says, short-term trades should be closed on the long side and aggressive shorts should also be considered then. Also read: Market is still in midst of an uptrend, says Udayan Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos. Q: Yesterday, we were speaking about how crucial holding the 4,800 mark would be for the Nifty. Now that it did it, what would you take away as a Nifty trader? A: Yesterday did not change the trend. That's the primary takeaway. But that can happen anytime later. The short-term trend is still up. Traders should also position themselves with the trend. So, they should be either long or look to go long. Q: At what point would you start questioning the trade, just an intraday breach of 4,800 is enough or would you need to see the closing below to start getting worried? A: We need to see a close below 4,800. That's a matter of judgement. If the breach is just a few points then the chances are that the close could well be above it. But if the breach becomes deeper, the trader has to make a call. Broadly, a close below 4,800 is required. 4,800 was the resistance. What becomes resistance eventually becomes support, if it is breached. So, 4,800 is now significant support. If that significant support is breached, I think short-term trades should be closed on the long side and aggressive shorts should also be considered then. Q: You have got more buys on your list today going with the trend, start with Apollo Tyres . A: Apollo Tyres has come on my buy list on and off for the last 10-15 days. It's completed a bear market on correction. It is doing the right things, making higher highs, higher lows, slowly inching upwards. So, the chart is not just for today. I think Apollo is now ready for a significant upmove. This is not a roaring bull market anyway, but Apollo Tyres is a buy, keep a target of Rs 71. But if you are a position trader, you would want to watch this stock for buying opportunities regularly. Q: Gujarat Fluorochemicals is a buy this morning. A: It's a buy after a long time. Gujarat Fluorochemicals was on of those concept stocks that could do no wrong. It was in the right business doing all sorts of right things and then suddenly halved itself. That's the way the market behaves. But now it is not just Gujarat Fluorochemicals, a lot of midcap stocks are not showing signs of bottoming out. Whether it is permanent or whether it's a short-term bottom, we will find out, but the signs are there. Gujarat Fluorochemicals is also one of them. It's been a favourite earlier. It's in the F&O section. So, there are a lot of good things going with it, there is a buying opportunity here and it's worth taking. We don't know whether it will work out or not, but midcaps are outperforming. So, Gujarat Fluorochemicals is also a high beta stock, go for it. Disclosure: I have no personal holding in the stocks discussed.
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