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

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

Sudarshan Sukhani of Technical Trends is bullish on Dabur India, Deccan Chronicle, Punjab National Bank (PNB), Shree Renuka Sugars and Zee Entertainment. He advises investors to buy these stocks.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Canara Bank, Bank of India likely to outperform: Sukhani Tech Mahindra looks strong: Sukhani RIL has resistance at Rs 2100: Sukhani ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Dabur India See messages about Dabur India Dabur India BSE | NSE 29/05/12 Are Mutual Funds betting on Dabur India? Other Stocks in this news Deccan Chronicle Holdings | Punjab National Bank | Shree Renuka Sugars | Zee Entertainment Enterprises | Canara Bank | Bank Of India | IndusInd Bank | Yes Bank | Tech Mahindra | Mahindra Satyam | JSW Steel | LIC Housing Finance | Reliance Industries |

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

Q: How much more we can get in this rally for the Nifty? Do you think all the way back to 5,200 or you would draw the line a little before that?

A: Based on current momentum, we have at least, in terms of time, another fifteen days of good expectations before the cycle starts turning down even for the short-term. For price, it seems reasonable to expect that markets can go crazy. So 5,200 seems very reasonable expectation and from there we have to take it onwards. 5,200 is not that far away, it is just 250 points. We have already taken out 400 points.

Q: Which ones caught your eye and which ones have the best charts aside of PNB- the one you spoke about in the public sector undertaking (PSU) banking universe?

A: The ones that can rally best now although they have the best charts are the two stocks from PSU banks. Canara Bank and Bank of India , both are relatively underperformed and probably outperformance is likely. Among the private sector banks, Indusind Bank and Yes Bank are giving an impression of extraordinary things to happen there. Hence, these are four banks that I would be watching.

Q: Two strong moves from the technology space yesterday, Tech Mahindra and Mahindra Satyam ?

A: My advise to the viewers is to stick to Tech Mahindra. It has broken out of a trading range and is very strong. The fact remains that it has multiplied five times in six months but that is what most of them have done. So if you are a long-term investor, you need to look at Tech Mahindra seriously. If you are a trader, you must wait for a dip, don't try to bold it. Last week on Friday, we heard a suggestion that you go short at 4,820 when the market opens, it wasn't a very good idea. When the markets are going up, it is always my opinion that you don't stand in front of a running train.

Q: Have you taken a look at the charts of either JSW Steel or LIC Housing ?

A: Both. In LIC Housing it dipped a lot. I believe it was overbought at that time and it has done a remarkable rally. This is a stock that traders need to watch and buy on intraday dips. You may not even get bigger, significant dips. According to me, there is a lot of steam ahead in it. JSW Steel has been underperforming and that underperformance may persist for sometime.

Q: What do you think about Reliance technically?

A: It is roughly Rs 2,100 area where Reliance encounters significant resistance. So only if it overcomes that, it becomes a buying opportunity. Very truly, it is not a stock you want to short sell. I don't want to short sell anything in this market except maybe Educomp. I am short in it.

Q: For people who have not been able to participate in this pullback, is it dangerous to open a long or you can still go ahead and do that?

A: After 400 points, it is certainly more difficult but that is the trend. It has been the uptrend for last eight months now. So fully understanding the risks involved, it is still wiser to open a long position at this point. Ideally, you want to wait till next week, till the Nifty drifts or at least till it stops going up, goes into a consolidation. So the trade should still be going long.