Trend is up; see Nifty in 5400-5450 band: Sudarshan Sukhani

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Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy.

Q: How will you trade the Nifty now?

A: The Nifty is now likely to be in the 5,400-5,450 area. So, those who have taken long positions at any point of time and are in money should consider lifting some of those positions and taking profits. The market is not running away. There will be more opportunities for short-term traders to go long.

For position traders, who do not like these repeated ins and outs, they have to stay with the market that is up. The trend is up. The trade is on the long side. It has been since last week. I think we got it right before Mr. Draghi’s announcement. This is a good time to take some profits.

Q: Why have you picked Dena Bank today?

A: Public sector undertaking (PSU) banks are now giving the first sign of making a short-term low. We do not know whether this is the final low. But even short-term lows are tradable. It is also possible that the bank index may eventually do well for few days.

Dena Bank has made a very minor small bullish head and shoulder pattern. It is breaking out of that. It is being accompanied by the similar patterns in many other PSU banks. So, Dena Bank is a buying opportunity. Today, the market could be choppy. We cannot do anything about it, but its worthwhile taking a position for few days.

Q: What is the call on ICICI Bank for the day?

A: We need to buy. Yesterday, ICICI Bank had a good move. So, it’s going to consolidate today, tomorrow. Any consolidation, intraday consolidation, should be used to build positions in the bank. It is moving towards Rs 975 and probably then it will decide what to do.

Q: Pantaloon Retail is a sell.

A: Pantaloon is in a downtrend. All stocks will go against and correct and react sometime and Pantaloon’s reaction goes on the upside. It goes up for two days. We all get excited that this is a sign that retail is going to get FDI, but that’s not so.

Yesterday, it fell in a market that did very well. This decline is likely to continue. Bear markets will end with a lot of pain and Pantaloon is one of them. I expect this decline to continue today and give us back to back gains on the downside.

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