Sep 01, 2010, 10.49 AM | Source: CNBC-TV18
Sudarshan Sukhani of Technical Trends is bullish on Adani Power, Apollo Tyres, Sun TV, Indian Hotels and Bajaj Hindusthan. He advises traders to buy into these stocks.
Speaking to CNBC-TV18, Sukhani also spoke about his reading of the market and the road ahead.
Here are the key levels:
On Indian Hotels
Indian Hotels is part of the space that I think is likely to move up higher. The sector seems to be promising more importantly. The stock has made an excellent technical pattern—a double bottom. It broke out above at Rs 107.
Yesterday’s down move was a correction which qualifies for a buy on dip. With the markets remaining cheerful for the next few days this is the proper time to go and get that dip. I also have positions in it.
On Bajaj Hindusthan
It has gone through a very sharp correction or maybe it’s a bear market. I do not know. But yesterday’s price action suggests that a short-term low maybe in place. This is one of those contrary trades. Just take a chance; if it works there is money to be made on the upside because it fell yesterday then recovered to close better.
On Apollo Tyres
Apollo Tyres has been moving up. It went to Rs 59 and since then, for those who follow technical patterns, it’s making a five wave advance. The correction that we saw was probably the fourth wave correction, which means an upswing, which would be a fifth wave upswing taking it to anywhere between eventually Rs 78-85. The targets are just targets but the stock is a buy.
If this is the end of the fourth wave correction money is to be made on the long side.
On Adani Power
I was generally downbeat on this stock at some point of time. It now appears that this stock has a momentum of its own. It has fallen and that fall is a correction in an ongoing bull market. So if the market says, “We like it.”—who am I to complain? The momentum is not going to be extinguished in just a few days. The whole market went through a correction.
So once this decline is over it’s a buying opportunity. This is a pure momentum play, I do not know about value in this but for short-term traders there is a good opportunity here.
On Sun TV
Sun TV was going through a correction and it’s moved up from Rs 400 to Rs 490, any stock that moves up inevitably corrects although we sometimes think that this time it is different but it never is for e.g. how Bombay Dyeing has gone up and gone back to where it started from. So Sun TV is a buying opportunity. It’s in an uptrend, it’s gone through a correction, yesterday’s price action it closed better, tell us that the correction maybe over.
These are the ways in which position traders make money. I am giving you themes, I do not know if any of them work out on a day trading basis but they usually work out on a slightly longer timeframe.