Watch out for 5700 on upside: Sudarshan Sukhani

According to him, the Nifty is now in a very narrow range, about 5,700 on the upside and 5,660 on the downside, just 40 points. "A move above 5,700 or below 5,660 should give an intraday trading opportunity," he adds.

Also read: Best of rally over; markets enter choppy phase, says Justin Harper

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

Q: What's your call on the Nifty today?

A: We’ll see some kind of an intraday upmove today. The Nifty is now in a very narrow range, about 5,700 on the upside and 5,660 on the downside, just 40 points. So, a move above 5,700 or below 5,660 should give an intraday trading opportunity. But beyond that, the choppiness should continue. I don’t think there is any swing trading or position trading set-up in the Nifty or the Bank Nifty for now.

Q: How would you approach trade in the morning, what kind of an opening would elicit what kind of response from you?

A: An open between 5,660 and 5,700 would simply mean we sit and wait, the Nifty is not going to stay in this small range forever. Assuming it crosses 5,700, there is a buying opportunity and if it crosses below 5,660 there is a selling opportunity. The 40 point range will be a no trade zone.

Q: Would you do anything in BHEL trade or would any of the Nifty stocks be a trade for you?

A: For BHEL, not today. BHEL has rallied a lot and we have been upbeat on this stock so it is gratifying to note the rally. But now all stocks will pause. BHEL has come to a point where a pause is probably eminent so I would not buy it now. It requires a very decent downside or a consolidation before we re-enter.

Are there any Nifty stocks that can be bought into? I would say apart from the Nifty there are lot of stocks where buying and selling can be done but primarily the blue-chips are best avoided.

Q: You have a sell on TCS for the morning?

A: We saw a stunning rally in the Nifty and throughout this rally IT stocks were actually falling so one way of looking at it is the mind boggles to image what the Nifty would be doing if IT stocks were participating in it. But that’s just on the lighter side.

TCS now continues its decline. All these IT stocks are in a deep correction. That correction doesn’t show signs of ending. So, TCS in a choppy market is a short selling idea.

Disclosure: I have no personal holdings in the stocks discussed.