May 17, 2013, 11.16 AM | Source: CNBC-TV18

Stay long, intraday traders keep stop loss of 6130: Sukhani

Technical analyst, Sudarshan Sukhani of suggests Nifty stop loss for day traders and intraday traders at 6,130.

In an interview to CNBC-TV18, technical analyst, Sudarshan Sukhani, shared reading and outlook on the market. He suggested to stay long on Nifty with tight stop losses of 6,130 for day traders, intraday traders and 6,000 for position traders.

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Below is the verbatim transcript of Sukhani's interview with CNBC-TV18. 

Q: How would you call the day's trade?

A: The market is in fine shape. We have seen the Nifty cross its earlier 2013 highs, make multiple month highs. So, new highs are bullish. But the problem with our market is the relentless drive we have seen from sub 5,500 to almost 6,200. That is roughly 700 points. This is not sustainable. Therefore, I would be a buyer; I would be staying on the long side of the Nifty with tight stop losses. Our trade is to take tight stop loss rather than to predict targets for the Nifty.

My stop losses for Nifty are 6,130 for day traders, intraday traders and for position traders it is 6,000. So far as 6,130 remain, short-term traders should be on the long side and the same applies to position traders. However, broadly stay on the long side till these levels are not broken and I am not predicting where it can go.

Q: You have Anant Raj on your buy list today?

A: Yes. Real estate stocks are on a roll and Anand Raj seems to be ready for a big move. It has two bullish patterns. Double bottoms, which got confirmed yesterday and while the double bottom was getting confirmed the stock made a trading range for few days which it broke out from. All in all there was a lot of compression, a lot of buying interest was being generated and that breakout has occurred. Therefore, this breakout is likely to see the stock much higher. One has to buy it in the cash segment. It is worth taking a trade on.

Q: You have a buy on Jaiprakash Power Ventures as well?

A: A bull market does strange things to stocks and Jaiprakash Power Ventures is a case where buying is now suggested. It was languishing, it was in a bear market of its own and then it started building a base and that base has come out as a bullish head and shoulder pattern, suggests that the bear market is over and a bull market is starting. It is broken out of that pattern and today one could see a lot of follow-through because its sister company has done well. Therefore, Jaiprakash Power is a buying opportunity, breaking out from a bullish pattern with strong momentum.       

Disclosure: Sudarshan Sukhani has no holdings in the stocks discussed.

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