Dec 21, 2011, 01.47 PM | Source: CNBC-TV18
Sudarshan Sukhani, s2analytics.com in an interview to CNBC-TV18 gave technical reading on Nifty and stocks across various sectors. Sukhani has a buy call on Unichem, Tata Motors and Ranbaxy.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Below is the edited transcript of Sukhaniís interview with CNBC-TV18. Also watch the accompanying video.
Q: The morning call was that you are going to stay long till 4,570 is breached. It's pretty much come as per what you guessed. People who havenít added fresh longs can go ahead and even add at this juncture or is it pretty much spent for the day?
A: It is possible to add long positions even at this juncture. We are almost where we were when the market opened. There is very little difference between then and now. My own sense is that any rally we should cross 4,650 which is the first barrier, I am assuming we will do that. Then a rally could go higher. 4800 is also within the realms of possibility. It's not that big a problem, we were at 4,800 just a few days ago.
Q: What is for a positional short player? You were recommending positional short sometime back, all that remains intact and up to what level, what stop loss?
A: I have brought down my stop loss for positional shorts to 4,800. If we take out 4,800 on a closing basis Iíll close the short positions. Remember these positions were taken on two occasions, first when 5,200 had broken and then when 5,000 was taken out. Assuming that we close them at 4,800, the positions would still make money.
Q: How would you approach Tata Motors?
A: Tata Motors is one of the relatively stronger stocks as of now so the trade here is to go long. Since my own recommendation for the Nifty also is to go long and it matches with the short term trend of the market.
Q: We would want to get your thoughts in on a couple of these pharmaceutical stocks. If you pick up something like Unichem that one has gained around 35% in the past 7 trading sessions, there have been some bullish reports on it but is coming off today down around 4%. Have you looked at the charts on that one?
A: Yes. Unichem has rallied almost 50% from the lows it made just 10 days ago. On the charts its theory is wait patiently for a deep correction and go and buy it. But because it is a stock that needs to be understood also why it rallied I am assuming that investors or traders will find out the reason for the rally and then buy it. But, apparently once it comes to Rs 125-130 it becomes a buy on dips opportunity.
Q: GTL has gone through a lot of news of course and therefore perhaps not a chartists delight at this point in time but is there a chartist observation?
A: No is not a chartist delight. Actually traders shouldnít be keeping this in their list anyway, just remember where it has fallen from. I donít think there is any trade in this share whether in going long or in doing anything else or going short or buying. The company name should be just away.
Q: Is there a chartist view on Ranbaxy?
A: This is news driven because the news came overnight. But yesterday afternoon the view was that Ranbaxy has an aggressive short term buying opportunity. In spite of the declines we have seen today I hold on to that view. Ranbaxy may have bottomed out in the short term. In intermediate term everything depends on the broad market but in the short term it is a buy.
A: HOEC is a sell. Just imagine here is a stock that keeps on falling and continues to fall on a day when the Nifty is up 1.5% or so. In any case it broke down from a very significantly long term bearish chart pattern. I wouldnít touch HOEC for a long time now. It has to go much lower.
IDFC is a different story. It is a far better chart and the sense is that around Rs 100 the stock is finding repeated support. I donít think you want to buy it today because it is falling when the broad market is better. IDFC is not a short sell, you wait patiently, if Rs 100 holds on then you want to go long in it probably in the next few days.