Go long, if Nifty continues to strengthen: Sukhani

Yesterday, the Sensex rose 75.71 points to close at 17,633.45. The Nifty went up 27.50 points and ended at 5,347.90.

In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com says, the Nifty is resolving the small trading range on the upside. "Based on that, we have taken some mild long positions yesterday. If the Nifty continues its strength, maybe not in the morning, but mid-afternoon or whenever, then we will add to our long positions," he adds. Below is the edited transcript of his interview with Udayan Mukherjee and Sonia Shenoy. Q: What is your call on the Nifty now? A: The Nifty is resolving the small trading range on the upside. In any case, it is most likely scenario because a consolidation occurred after an upmove. Usually, the trend continues. Based on that, we have taken some mild long positions yesterday. If the Nifty continues its strength, maybe not in the morning, but mid-afternoon or whenever, then we will add to our long positions. So, atleast today we are not going short on the Nifty. The idea is to build on long positions and see if 5,350 breakout is decisive. Q: Orchid Chemicals and Pharmaceuticals is the only sell in your list? A: Yes, that’s because some selling ideas should be kept in mind otherwise we get biased only one side. But broadly, I think that markets are looking cheerful. Orchid is in a big mess. It’s now on the verge of breaking the Rs 100 level. That’s not the way a good stock should behave. It’s falling and not stopping. So, Orchid is a short sell, although, that short sell should be taken only if we get a view that the markets remain choppy. Q: You have a buy on ACC today? A: ACC is making new highs just as Ambuja Cement and UltraTech Cement. Yesterday there was a new high. These new highs are usually accompanied by a follow-through on the subsequent days. That is happening with cement regularly. So, we want to go long in ACC preferably on some kind of morning or intraday dip. Q: Havells India from the midcap is a buy today? A: Havells is a much better choice because it has corrected 10%. So, from Rs 600 it has already come down to Rs 550 but it’s in an uptrend. So, we are now buying on a dip and buying in dips is usually a good idea. Havells is in a trading range. It’s on the verge of breaking out, above that range. The first target for position traders could be Rs 600 where its earlier highs were made. It’s a stock that’s in a sustained up move. So, today we are anticipating a breakout on the upside and looking to go long. Q: How does Jain Irrigation look for someone who wants to get into it today? A: I think it looks very interesting. All of this depends on the fact that the Nifty makes the slightest upmove, not necessarily large. But if it holds on to its gains which it made yesterday, a lot of the midcaps should begin to move up and Jain Irrigation has already completed its bear market. The sense is that the worst is over. We have been upbeat on this stock. It corrected. Yesterday it moved up and that momentum should continue. It should see much higher levels, if one is a position trader. Disclosure: I have no holdings in the stocks discussed _PAGEBREAK_ Q: You think Century Textiles is headed higher? A: It does appear that Century Textiles has gone through basing process, it also gone through some random moves, lot of choppiness and that choppiness is behind it. That usually happens when after a bear market of some kind, the stock starts consolidating. So, I am upbeat on Century Textiles. If it moves up then there is a lot of upside. We have seen Rs 500 earlier and I wouldn’t be surprise if we see 60% gains eventually in few months. But for today, there is a breakout, we want to trade that and I think midcaps could do well. Q: You have a buy on Asian Paints? A: Asian Paints was a favourite. Then it corrected 15-17% - that is as much of a correction as a good stock, a favourite sector can do and that is over and behind it. Now, it has been rallying. The rally should see it come back with previous highs of Rs 3,900-4,000. Asian Paints is becoming an intraday candidate because once it starts an intraday move on the upside, it gives a sustained upmove. So, even though it’s highly priced and little less volatile, it’s a good stock to be on the long side for intraday traders. Q: How would you approach Dish TV today? A: Dish TV is an excellent stock to buy into. It’s completed a dip or a correction. It’s on the verge of making new highs, as could the Nifty. Q: You have not been bullish on Educomp Solutions? A: I am still not bullish on Educomp. It is heading towards Rs 100 on my reckoning. Q: What about Jet Airways? A: Jet Airways is going up. The momentum is nice. The charts are suggesting higher highs-higher lows, one want to buy it. Now, whether one buys it after yesterday’s rally or on a dip, but it should be bought into. Q: S Kumars Nationwide has looked very vulnerable over the last few days. Is the chart looking bad as well? A: It is horrible. It cracked at Rs 33 and it’s fallen to Rs 20, almost non-stop and it’s going lower. So, I wouldn’t touch S Kumars. It’s a short sell, even that is possible. It is becoming a penny stock. Q: How about Housing Development and Infrastructure (HDIL)? A: I have been a buyer in HDIL for some time now and that view is consistent. It is moving towards Rs 100. Q: Where is the support on Tata Motors now? A: Tata Motors’ support is at Rs 220 and that is holding. So, I would be a buyer in Tata Motors. There is certain amount of risk but that risk is worth taking.