Sukhani says close below 4640 signals short-term downtrend

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Sukhani says close below 4640 signals short-term downtrend

In an interview with CNBC-TV18, Sudarshan Sukhani of s2analytics.com, spoke about this reading of the current market situation and the road ahead.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See previous views by Sudarshan Sukhani See what other Experts & Brokerages are saying about Mahindra Satyam See messages about Mahindra Satyam Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Rashtriya Chemicals and Fertilisers |

In an interview with CNBC-TV18, Sudarshan Sukhani of s2analytics.com, spoke about this reading of the current market situation and the road ahead.

Below is a verbatim transcript of his interview on CNBC-TV18.

Q: Mahindra Satyam and RCF are two stocks with good volumes right now; up in the green with about 5-6%. Is there a short-term positional kind of trade on these two stocks?

A: Not really. RCF has rallied for the last five days. It's reaching Rs 80, where a lot of resistance should come. The rally started from 45, so the big move in RCF, I suspect, is already over. Now we could be entering at the end of this trend.

I would not go long on RCF. It will become a long when it corrects again and that's some time away.

Mahindra Satyam is not a stock that you want to trade. It's been in a very narrow range. It is true that it moves up, but it also moves down and remains choppy. So it's no for both of them.

Q: What are the levels that you are watching out for the Bank Nifty?

A: We should be looking at 7,900 levels. If that cracks, and its little way off now, then we are looking at a flood on the downside.

Q: What levels would you be watching out for and what sort of pressure could we see on the Nifty in particular?

A: We have already talked about a trading range, which has a support level of 4,700, but corresponding to that significant level, just as I explained on the Bank Nifty, 4,640 is the level on the Nifty.

If the Nifty were to close below 4,640, to me, that would be a signal that the intermediate downtrend has resumed and we are looking at lower lows and certainly breaking the ones we made.

Disclosure

I do not have a personal holding in any of the stocks discussed.