Mar 15, 2012, 12.19 PM | Source: CNBC-TV18
Sudarshan Sukhani of s2analytics.com spoke to CNCB-TV18 about where he sees the market heading today. Check out his comments.
Sudarshan Sukhani (more)
Technical Analyst, s2analytics.com | Capital Expertise: Equity - Technical
Below is the edited transcript of his interview. Also watch the accompanying video.
Q: What about the Nifty today, how do you trade it now since there are lots of events in the next 48 hours, what would be a prudent course for the trader?
A: Even yesterday, my suggestion was to avoid from taking new positions and in the morning, once the Nifty started sliding, we closed the balance of our long positions. That was a good idea because the Nifty then fell 70 points intraday, that is volatility for you, it rallied again and the chances are that it is going to go down again today.
So small positions taken in the afternoon are going to be closed today, and the Nifty trade is very simple, donít trade it. Volatility kills, we donít know the direction in which it moves; sometimes it can go 100 points up or down, we donít know that.
What we know is when markets are likely to be volatile, traders are going to get chopped off. So the trade here to just watch television patiently, look at the budget, look at the events and stay away from the market. Repeatedly, our tests have proven that trading in these high news days never makes money.
Q: Let us talk about some of the financials on your list today, you are buying Yes Bank ?
A: Yes Bank is at lifetime new highs and is a good stock to buy. The problem here is not just Yes Bank, but for most of the financials, we have a credit policy coming in and whether you want to buy before the credit policy is something that I cannot answer. Assuming that you want to buy financials after the policy, it would be wise and Yes Bank should be your first pick. So that is why this stock is in my list, not necessarily buying it at Rs 915, but keep it in your short-list. If there is a buying opportunity, look for this one.
Q: You are buying LIC Housing Finance as well from the financial side?
A: Yes and that is a relatively safer bet, in the sense that I donít think we need to wait for the policy. It is more of a position trade. You take the trade today and not necessarily a day trade. The chances are that there is money on the long side irrespective of the policy, irrespective of the budget. It has gone through a very reasonable correction, it is now a buy-on-dips. The idea of putting it in the list is that it is also possible that a day trader could make money in it but ideally, you maintain a position.
Q: Metals have become extremely high beta but you think something like Hindalco is good for a long?
A: It is good for a long only for a couple of days. The chances are that while the financials can move up and down and do a lot of strange things, it is possible that metals may invisibly or quietly inch upward. So Hindalco remains a buying opportunity and the chances are that these stocks will be relatively immune to the news events, at least for today and for tomorrow.
Q: Tata Motors did well in a falling market or in the market which came off yesterday, you think it is good for more?
A: I think it is good for another 50 points; that is another Rs 50. It is amazing how that chart is suggesting a significant upside in Tata Motors. It may not come about, I never would be able to say this is going to happen, it is all probability, but the charts are extremely attractive for Tata Motors on the long side. It is doing well and the chances are stocks that do well keep on doing well. So I donít know what the impact of the budget will be and I wouldnít like to comment on that, but if there is any opportunity to buy, Tata Motors is a prime candidate to be going long into.
Q: The sell on your list is NMDC today.
A: I need to put something to sell on, otherwise I become completely biased and that is not a good idea. We have to let the markets do what they do. NMDC has been a very big disappointment ever since it got listed, it has been literally sliding down regularly, there is more downside apparently here, maybe because it is a PSU, maybe because of other things. So it is short selling idea. I donít think one should be taking the short positions in this market, but it is there.
Q: Finally, your buy on Sun TV .
A: Sun TV is a good stock to buy. Again it is something that is likely to remain immune from the news evens. It has been making a perfect pattern of staircase, it goes up then pauses, goes up and pauses. Just yesterday, it moved out of that pause and the chances are it will make new highs for this bull market. It has also completed its bear market for whatever the reason. I think Sun TV is an excellent day trade and a position trade. It is more of a position trade because these stocks donít necessarily do something in a single day.