Stay away from Nifty, be stock specific: Sudarshan Sukhani

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Stay away from Nifty, be stock specific: Sudarshan Sukhani

Sudarshan Sukhani, s2analytics.com says, the Nifty should be left alone and one should focus on individual stocks.

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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 Petronet LNG See messages about Petronet LNG Petronet LNG BSE | NSE 29/05/12 Are Mutual Funds betting on Petronet LNG? Other Stocks in this news Bombay Dyeing and Manufacturing Company | ABB | Sun Pharmaceutical Industries | Fortis Healthcare | IRB Infrastructure Developers | DLF | India Infoline | Hindustan Oil Exploration Company | Axis Bank | Jubilant Foodworks |

The Indian market saw a stupendous rally yesterday. The Nifty closed almost at the 4,850 mark with a 106-point gain. The Sensex too saw a good close at 16,165.

In an interview to CNBC-TV18, Sudarshan Sukhani, s2analytics.com says, the minor trend is up. "The trade should be on the long side."

However, he says, the Nifty should be left alone and one should focus on individual stocks.

Also read: Market may consolidate today; uptrend still intact, 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: What is your call on the market now?

A: The minor trend is up. So, the trade should be on the long side. But today we are again going to go through choppy times. So, the Nifty can be best left alone and the focus should go on individual stocks.

Q: On your buy list is Petronet LNG today.

A: Petronet LNG has been a favourite stock. For the last one-and-a-half months, it's locked in a very narrow range. This is a substitute for a correction. That means the stock is so strong, it refuses to come down, it takes a consolidation as a correction.

Now, this correction maybe is getting over. So, Petronet is likely to resume its rally and also make new highs eventually. Petronet is a buy, it is just pushing above resistance yesterday.

Q: Bombay Dyeing is also on your buy list.

A: Bombay Dyeing has an interesting chart. It has some strong support at Rs 340. Every time it goes to Rs 340, it finds support and bounces back. It has already bounced back. But now, that bounce back should take it to its next level of resistance- Rs 425-430. So, there is some room on the upside here.

Yesterday, it had a good day. So, I suspect that it will continue its rally to reach its first level of resistance. That's the reason why it's worth looking at on the buy side.

Q: We have been talking about resurgence in capital goods; ABB is a long as well.

A: ABB is a different story. But the chart pattern at the current levels is same as Petronet. ABB also has been moving in a narrow trading range for the last two months. That could well represent a bottoming out process.

ABB is doing all the right things, except ofcourse it hasn't moved up. I am just anticipating that this is a stock that's bottoming out. Yesterday, it had a good rally, it also crossed and made a 20-day high. That tells us that there is some buying interest here. That buying interest could persist. So, it is not just for short-term traders even for people who are wanting to take positions ABB should deserve attention because it maybe completing its bear market.