Sukhani recommends trading 3 largecap stocks

The markets are setting themselves up for a much deeper correction, believe Sudarshan Sukhani of s2analytics.com. He told CNBC-TV18 that the first target for this down trend is 5780-5800.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Technicals » Technicals

Feb 19, 2013, 10.43 AM | Source: CNBC-TV18

Sukhani recommends trading 3 largecap stocks

The markets are setting themselves up for a much deeper correction, believe Sudarshan Sukhani of s2analytics.com. He told CNBC-TV18 that the first target for this down trend is 5780-5800.

Like this story, share it with millions of investors on M3

Sukhani recommends trading 3 largecap stocks

The markets are setting themselves up for a much deeper correction, believe Sudarshan Sukhani of s2analytics.com. He told CNBC-TV18 that the first target for this down trend is 5780-5800.

Post Your Comments

Share Cancel

Sudarshan Sukhani (more)

Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical

The market is set for a much deeper correction, believes Sudarshan Sukhani of s2analytics.com. He told CNBC-TV18 that the first target for this down trend is 5780-5800.

Choppy market have given opportunities for both, buying and selling. Among the largecaps, Sukhani recommends buying Infosys and selling Petronet and Union Bank . In the midcaps he has only one recommendation to buy Apollo tyres .

Below is the verbatim transcript of his interview to CNBC-TV18

Q: Is there a chance of the market going well below these 5800-5700 levels in the weeks to come in the run up to the Budget?

A: We have been expecting a decline and talking about it and being on the short side. So yes, most people understand that the market will also go down and there is no sense in fighting the trend. The trend is still down.

Now, it is always possible for this market to stage a relief rally. That could be sudden just as we saw on Friday, there was a very quick half an hour rally. That could extend in the read that we are talking about. I would consider that to be a relief rally and eventually, we should be selling into that rally.

The first target for this down trend is 5780-5800. The markets are setting themselves up for a much deeper correction. Both the Nifty and the Bank Nifty have confirmed bearish patterns that say an intermediate top is in place and markets are looking at much lower levels. So, 5800 eventually may not hold. Now, it is difficult to say whether that happens before the Budget or after.

Q: What are the stocks that you would be either buying or selling in the following week?

A: Choppy markets have given opportunities for buying and selling both. After the big upmove on the back of results, Infosys has been in a trading range, thus looking to buy it. IT stocks are doing well, that is primarily the four majors. I would expect Infosys to breakout on the upside from its trading range. So Infosys is a buying opportunity with maintaining a stop loss. Keep this as a trading call, but it could workout nicely even if the Nifty will have one good day.

Similarly, I will be looking to buy Apollo Tyres, a midcap stock. It has done all the right things, gone through a deep correction making higher highs, higher lows. It is now in a consolidation, preparing to breakout. So, there will be some stocks which will outperform the market. It is wise to focus only on them rather than to search for falling knives. So Apollo Tyres is another buying opportunity.

In the short sell, one of the nice things about today or about this market is that the midcaps have been beaten down so badly that they cannot be shorted anymore, unless they go up. So, that is one big relief that we cannot sell most of them. However, there are some selling opportunities still.

We have Petronet LNG in a downtrend. It saw a three day rally. So, we would like to sell into small strength. Petronet and Union Bank are short sells. Union Bank was battered after bad results. It saw a consolidation, a small two day rally and that rally is good enough to be sold into.

The idea is to sell weak stocks which have seen small rallies and buy the strong ones. That will be the way to approach the market next week.

Buy, Hold, Sell ? Hear it first on M3
Sukhani recommends trading 3 largecap stocks

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login