Sudarshan Sukhani's top 5 picks for trade today

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Sudarshan Sukhani's top 5 picks for trade today

Technical Analyst, Sudarshan Sukhani of Technical Trends is bullish on Shree Renuka, Bajaj Hindustan and Siemens India. However, Sukhani has a sell call on Aban Offshore, India Infoline and Great Offshore.

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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 Shree Renuka See messages about Shree Renuka Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Bajaj Hindusthan | Aban Offshore | India Infoline | Great Offshore | Oriental Bank of Commerce | Bank Of Baroda | Allahabad Bank | National Aluminium Company |

Q: How are you feeling technically about the Nifty, if you had to stick your neck out and make a guess what would it be?

A: Currently the market is in a downtrend, its acorrection or whatever you call it - a trading range breakdown tells us we are heading lower. I don't see 4,800 offering any kind of support except for a day or two. So what is the next level if at all we look at - that is 4,700. My sense is that 4,700 is going to offer reasonable support and that is going to be the make or break line. A breakdown from 4,700 could probably take us much lower whatever our friends are talking about 4,200-4,100.

There are two scenarios, one we hold and then somewhere around that band of 4,700 we start saying okay, some accumulation starts. The second scenario is another 500 points is taken out. Earlier I was thinking of 4,500 but I don't think that level is going to be significant.

Q: there was a rebound in some of the banking stocks like Oriental Bank of Commerce and Bank of Baroda (BoB), did you have a look at them technically?

A: Yes, Allahabad Bank and all of them happened to be PUS banks except for Axis which was a private sector banks. It is not easy to make a call because we have very significant news event which will make or change but if this news event were not there, I would have said that BoB, Allahabad Bank and OBC are buy on dips opportunities but that event can change everything.

Q: Chart check on Nalco ?

A: Nalco is a better chart. There is a possibility of an investment there. In the short-term going to outperform Hindalco, Sterlite and the other likes. I don't know if you can actually trade in that stock but its certainly worthwhile looking at it. It's a dip at current levels.

Q: As a weekly close is there a particular level you would watch for today?

A: I am watching for 4,700. At this point, the market should find support. So today's movement is not going to be significant. Wherever it closes today so far as it is below 5,300, which is where the top was made, the trend remains down. So today' numbers are not going to be significant. We are going to be subdued. We are in downtrend. Next week we will see what happens.

Q: Has that become orientation even for professional traders like you that you wait for any up move in the market to basically position yourself on the short side?

A: That is right, there are two problems here. First as you have seen the upmoves are hardly coming, so at least part of the position is maintained because the trend is on the downside. So there is no sense in exiting the entire position and then waiting for those mythical moves, which sometimes come, sometimes don't. But the view is that you go and search for rallies and sell into the rallies there is not need to change that view now.