Stay away! Don't trade today, advises Sudarshan Sukhani

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Stay away! Don't trade today, advises Sudarshan Sukhani

Sudarshan Sukhani, technicaltrends.com says, it will be a tricky and a volatile day today. “Stay away, and don’t trade,” he advises.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Orchid Chemical See messages about Orchid Chemical Orchid Chemical BSE | NSE 29/05/12 Are Mutual Funds betting on Orchid Chemical? Other Stocks in this news CESC | Tech Mahindra | Tata Motors (DVR) | Great Eastern Shipping Company | Apollo Hospitals Enterprises | Hindalco Industries | Sterlite Industries (India) | Tata Steel | Steel Authority of India |

The November futures and options contracts will expire today. The global picture is not good as well.

Sudarshan Sukhani, technicaltrends.com says, it will be a tricky and a volatile day today. "Stay away, and don't trade," he advises.

He further says, if one wants to trade then the trade should be on short side.

According to him, the December series will also end lower.

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos.

Q: It's likely to be a tricky day because its expiry today. How would you approach the index as a Nifty trader?

A: It's likely to be a tricky day. We are also perched at 4,700. Will we get a relief rally or will we simply go down? That question is also there. So, both combined together are relatively lethal options. So, don't trade.

I don't think I want to do any short-term trading. I have positional shorts which I had added to yesterday. Today is probably a day to watch the markets.

I suspect there will be lot of intraday volatility, far more than is normal on an expiry day. So, it's best to stay away. But if at all you have to take trade, it has to be on the short side.

Also read: Sensex may slip to 13000 before bottoming out, says Udayan

Q: When we start the fresh series on Friday, what would be your trading orientation? How much elbow room would you give the Nifty in the event of a relief rally?

A: My assumption is that December should close lower than whatever its starts at tomorrow morning. So, the assumption is on the short and bearish side.

Relief rallies can be very sharp. I am giving 100 point elbow room currently to the Nifty. First it must cross 4,750 and close above it and then maybe we will have a review again.

Q: What is your call on Orchid Chemicals ?

A: Orchid Chemical has been in some kind of news, it declined, rallied. It is now on the verge of breaking a trading range. Once it breaks Rs 150, whether tomorrow or day after and I think it is going to do it today, then we are looking at new low in this stock.

These are not good news stocks. For whatever reasons any rally fizzles out and immediately sharp selling comes out. In Orchid, the selling seems to be imminent here. So, Orchid is a short selling idea, the technical are weak, support is breaking.

Q: What about CESC ?

A: It's not a big trading favourite. It's also fallen from Rs 340 to Rs 240. So, it is not as if it's a sudden short. For me, it's new on the list, but the stock has been the favourite for some people at least.

At Rs 240, CESC is saying that after five day consolidation it's prepared to go down. Yesterday, it saw a very down day. Down days are usually followed by even bigger declines. So, it's on the verge of another new decline. So, Rs 240 has a lot of leeway on the downside.

Disclosure: I have no personal position in any of the stocks discussed.