Take new long positions if Nifty ends above 5250: Sukhani

"Till it lasts there is no harm in keeping these day trades even an overnight trade."

Nifty gained 29.20 points on Tuesday and ended the session at 5,229. However, one should initiate new position on the long side if the Nifty closes above 5,250, he added.

Below is the edited transcript of Sukhani’s interview with CNBC-TV18.

Q: Would you continue holding your long positions on the Nifty given what you have seen in the last two days?

A: There is a case for maintaining the momentum trade which is to have some mild low volume long positions in the Nifty and the reason is that we are seeing some kind of momentum on the upside. Till it lasts there is no harm in keeping these day trades even an overnight trade.

The increase in volume or the actual addition or an initiation of a new position on the long side should come if the Nifty closes above 5,250 and that doesn’t guarantee a profit on the upside but traders never know the outcome so we go and add to our positions if that happens.

Q: You think Oil and Natural Gas Corporation (ONGC) is good for more?

A: ONGC is in a trading range and now at Rs 285-290 it is at the top of its trading range. Yesterday ONGC was a big contributor to the rally. So something that is outperforming will continue to outperform. ONGC is worth buying; maybe today will have a kind of intraday dip which becomes a perfect location to go long in ONGC. 

Q: What about Tata Global Beverage ?

A: Tata Global Beverage is one of those low beta stock but it is slowly and steadily moving up. It seems to have gone through a deep correction and that is over. Like ONGC, Tata Global Beverage is at the higher end of its trading range and pushing for a new breakout. New breakouts suggest relative strength and this market is rewarding stocks which have strong relative strength. So go for Tata Global today because it is a strong stock.