Stay away, let Nifty close above 5350: Sukhani

However, intraday traders can play the market by selling on rallies and buying on dips. "Any rally can be sold into for few points - that’s purely intraday. A sharp dip can again be bought into assuming that at least 10-20-30 points of a rally will come," he elaborated.

Further, Nifty traders should step aside and let the Nifty close above 5,350 to trade, he suggested.

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

Q: As an intraday trader would you just keep off after seeing the volatility yesterday?

A: Yes, that is the broad outlook that we want to stay away from the intraday and short-term trends. What could happen is that the intraday trader could have two different opportunities today; any rally can be sold into for few points - that’s purely intraday.

A sharp dip can again be bought into assuming that at least 10-20-30 points of a rally will come. Beyond that, the Nifty traders should step aside, let the Nifty close above 5,350 and decisively then there will be a trade there.

Q: Your views on SKS Microfinance , which did well in yesterday’s confusing market as well?

A: It’s a tribute to technical analysis that we can change our views and go with the market flow. I have been downbeat on SKS Microfinance since Rs 1,300, when it started listing. Now it seems that SKS has done all the right things, build a base, broken out.

So, the rally from 5,200 which is 100% is probably just the beginning of a very decent up move. I am upbeat on SKS Microfinance. Yesterday’s gains should be built upon. In a choppy market there will be winners and this one seems to be on the right track.

Q: Is Apollo Tyre is tribute to analysts as well?

A: Only partly, not as good as SKS Microfinance. Apollo Tyre is giving a sense that it’s confirming a double bottom. But the problem with Apollo Tyre will be that there is so much resistance at higher levels, somewhere just below Rs 100 that we are only looking at a trading rally here and not a sustained uptrend.

But for traders that is good enough. Yesterday’s gains should be built upon, there should be follow-through. It is not easy to say if the follow-through will come today or Monday but it should come. So there is money on the upside in Apollo but only limited.

So, we should trade with targets. Once the target is achieved, we should get out.

Q: Canara Bank continues to be a sell in your book?

A: It is remarkable how the public sector undertaking (PSU) banks keep on coming up in the list. We sell them and they keep on falling down.

One of the worries I have is, if the PSU banks do not rally it is difficult to imagine the Bank Nifty doing some good things and consequently the Nifty also and that is worry.

But Canara Bank is weak. It’s breaking support levels but it’s not a buy. It’s a short sell. In fact most PSU banks are short sell.

Q: You would continue to back Century Textiles ?

A: I would continue to back Century Textiles because it has made classic bull market pattern higher highs-higher lows. So, it’s now on the way to a sustained upmove.

Apparently the bear market in century is over, anything can happen to the markets and that’s a different issue. But it would be a stock I would back strongly on the upside.

We saw some gains yesterday and today any intraday dip should be used to buy into it.

Q: You think United Spirits is tiring?

A: It’s only my perception, but it’s been certainly defying my predictions for now. I have become downbeat at Rs 700 and its come to Rs 850. It does appear that it’s tiring. So, I would like to take a short sell here because I am not very upbeat on stocks that are influenced by news and have such group company problems.

We have a stop loss and if it doesn’t work out we get stopped out. We could get stopped out even earlier on our own if the trend changes. But as of now it seems that if not anything, at least a correction is in the offing.

Q: What is happening with UltraTech Cement , it’s just been a one-way rally since the month of June?

A: It’s a dream and the same thing has been happening with Ambuja Cement and now with ACC . All of the cement stocks and it’s almost as if by stealth because it’s sort of under owned or under tracked sector.

UltraTech doesn’t complete its rally now, it continues. After a small trading range it’s broken out and that tells us there is much more upside here. So, cement is something where traders should be looking to buy, not just UltraTech but the other two also.

For today UltraTech seems to be an excellent buying on dips opportunity for the day trader, for the swing trader.

Disclosure: I have no personal holding in the stocks discussed.