Technical analyst Sudarshan Sukhani of Technical Trends advises traders to go long on dips. "My level for the Nifty to state that the uptrend has been cancelled is roughly 5,210—that is the intermediate low that was made about 20 days ago."
Speaking to CNBC-TV18, Sukhani also gave his views on a whole host of buzzing stocks and his outlook for the market.
Below is a verbatim transcript of the interview. Also watch the video.
Q: What one must do with the Nifty today considering the fact that it has been a pretty choppy ride for the past couple of trading sessions?
A: I don’t know if it has been a choppy ride because we had a very good upswing. I have seen markets going to trading ranges, correct and take a rest after big moves up or down. So I would assume that this is just normal for the market. Of course, it is a little bothersome as we are watching it minute-by-minute. But for anyone having a more stable view of this market, the Nifty is in an uptrend. It has broken out of a very large trading range—it has retreated into that. That is not surprising because such breakouts will take time to mature. So far as the trend is intact, I think you have to buy on dips.
My level for the Nifty to say that the uptrend has been cancelled is roughly 5,210—that is the intermediate low that was made about 20 days ago. So far is the index is above that level, we have the pattern of higher highs, higher lows. We have the pattern of breakouts, of upmoves and then sideways trend reversal. Almost all of it suggests that you should be long on dips.
Q: How do the charts of both TCS and Axis Bank look at this point in time?
A: Axis Bank looks like a major top being formed so I would not buy that stock. It looks ready for a very big dip or a correction. TCS has a better chart, I would assume that the rallies that you were expecting today should come about and it is outperforming Infosys and that outperformance will continue. Now the actual gains in TCS will depend on the broad market.
Q: Oil was a problem but even some of the other heavyweights from the telecom space have begun to drag again, are you getting a clear sense of how to trade a Bharti or an Idea?
A: My sense is that Bharti, Idea or even RCom. RCom has some very terrible charts building up. So these were relief rallies and it is quite possible that the rallies are either done with or will be over. So you don’t want to buy them on dips now. Professional traders can look to go short, others should simply stay away, wait for another significant decline before entering that.
ADS BY GOOGLE
video of the day
Dont see mkt going anywhere now; like Bharat Forge: Dipen