Momentum favouring bulls, stay long on Nifty: Sukhani

Sudarshan Sukhani, technical analyst, s2analytics.com is recommending traders to look at long positions in Nifty and Bank Nifty. Opining that market rally is tradable on the long side also, Sukhani says, "For both the indices, Nifty and Bank Nifty, the short-term traders should be looking to stay on the long side."

On specific stocks, Sukhani recommends buying Exide Industries. He believes Exide has an interesting chart. The stock dipped after the Q3 earnings, however, it has now managed to get back to Rs 132 levels. Reiterating his buy on the stock, he says, "The long-term charts of Exide are fairly decent and an intraday trade has now emerged."

Below is the edited transcript of Sukhani's interview to CNBC-TV18. Q: Even as an intraday call, would you be playing a long trade on the Nifty this morning?
A: Yes, I would. Infact, yesterday we had suggested that traders should go long and that was for that one-two day trade. So, if you are carrying a long position that is a good idea. I expect some more upside. It is not easy to put numbers on where the market will stop because the market stops wherever it wants. This rally is tradable on the long side also. So, momentum is now favouring the bulls in the short-term and that applies to the Bank Nifty too.
Bank Nifty probably has more upside here. Suddenly, it built a base and broke out yesterday. So, for both the indices Nifty and Bank Nifty, the short-term traders should be looking to stay on the long side. On position trader, maintain a short position because at some point, this will stop.

More to come.