Sudarshan Sukhani's top 5 picks for today's trade

Here is a verbatim transcript of an exclusive interview with Sudarshan Sukhani on CNBC-TV18. Also watch the accompanying video,

Q: How are you approaching the Nifty given the tight range which has been past two-three days?

A: There is no purpose in making a call on how this range will breakout because we are in an uptrend. We will have to assume that the chances of breakout on the upside are stronger. However, it could go either way. It is clearly 5,080 and roughly 5,000 on the lower side. This 80 point range is a no trade zone. A close above 5,080 would tell us that we are certainly heading towards 5,300-5,400, but below 5,000. It simply tells us that this time we have not crossed 5,080-5,100. So the next time this event could happen. Hence, trading on the short side is difficult. You wait patiently for a breakout on the upside.

Q: What about Ispat and Sesa Goa ?

A: They are very different animals. I would not touch Ispat at all, inspite of the rallies, the momentum that it sometime shows. It is a stock that is best left alone and avoided. Sesa Goa, after that sharp correction, has rallied almost to its all time highs. Stocks that are making lifetime highs should be bought. You need the courage to buy it when it falls 20%. That is not easy to come by but the market tells us that Sesa Goa has a substantially higher level to see in the next few years. So buy on dips.

Q: How would you trade on IDFC from here?

A: One should still buy it. If one is a long-term player then one can buy it at current levels and ignore the rally we have seen in it. If not then one should wait for those intraday or two-three days dips. Some of the financials are telling us that they are going to cross their earlier highs, go far more than we can imagine. IDFC and IDBI both seem to be in that category.

Q: CMC is up 80% in three months. What do you think about it?

A: It is the outperformer in the entire IT space and has been doing well. For someone who wants to look at a small IT company with good potential, CMC qualifies, it has rallied yesterday also. So you do not have to go and buy it today. However, I think one should buy it on a dip and it could do better than Infosys .