In an interview with CNBC-TV18, Sudarshan Sukhani of s2analytics.com gave away his trade ideas for Diwali. He suggested to go short on Opto Circuits and Tata Communications. He also added that Maruti and Yes Bank will be his favourite for the next week’s trade.
In an interview with CNBC-TV18, Sudarshan Sukhani of s2analytics.com gave away his trade ideas for Diwali. He suggested to go short on Opto Circuits and Tata Communications . He also added that Maruti and Yes Bank will be his favourite for the next week's trade.
Below is the edited transcript of his interview with CNBC-TV18.
Q: What did you make about the close below 5700 level last week? How would you approach next week?
A: It is true that the markets closed below 5700. That ensures that we are back into a trading range, where we have been floating for the last four weeks. But, that doesn't change the trend of the market. The trend of the market is up. Now we cannot have a demand market. That is just not possible. Each and every leg of the rally will have different contours. The trend is up. A close at 5685 does not change the uptrend. Probability of a final thrust towards 6000 is stronger than a decline to 5200-5300. So, the trade needs to be on the bullish side. Preferably on dips so that risk is low.
Q: Any stock ideas that you want to leave us with?
A: Yes, but these are trading ideas which I usually do. These are not buy, hold and forget stocks. They are ones that you can look at in the next week, which is likely to be choppy, even if we eliminate the holidays. So, there are trades on the short side as well on the long side.
My broad bias is bullish. So, I would prefer to look at stocks that are opportunities for buying. First is Maruti. It has been in a trading range. It has broken out of it and has seen deep corrections. It has done all the right things and is now on the verge of making new highs for this up move. That is a stock we should be looking at to buy at every dip. Second is private sector banks; they are outperformers and will remain so. Yes Bank is a distinct outperformer in that group. Next week traders should be looking to buy Yes Bank, see how much they can get from it in the first three-and-a-half trading days. Markets will be choppy, but still there is money in it.
READ MORE ON Sudarshan Sukhani, s2analytics.com, Maruti , Yes Bank, Tata Communications, Opto Circuits
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Like Bank Nifty; mkt has strong support at 7700: PhillipCap