Take shorts below 5600; longs above 5650: Sudarshan

Markets are expected to remain volatile, as investors watch the winter session of the parliament, which is expected to test the government's will to pass key reforms. The week also marks the expiry of November derivative contracts, while the July-September GDP data will be released on November.

Sudarshan Sukhani of s2analytics.com, in an interview to CNBC-TV18, says one cannot predict the direction of the market when it is trading in a tight range. While giving his trading ideas for the next week, he says, investors need to wait for decisive breach of 5600 on the downside to take short positions on the Nifty. On the other hand, if Nifty decisively crosses 5650 then one can start building up long positions.  Below is the edited script of his interview with CNBC-TV18's Latha Ventakesh Q: What are the charts telling you, will it be a breakdown or a breakout above 5650 or 5700? A: It is anybody's guess. When market goes into a tight range, the direction in which they move cannot be predicted in advance. So, I am going to take a punt. I would assume that the market would breakdown, go below 5600 and go towards 5400 but I could be wrong. So, we will eventually follow what the market does. Q: What would your trade be going into Monday? Will you want to wait out the events and wait out the first few trades on Monday before suggesting anything for Monday? A: With regards to Nifty, the idea would be to wait for 5600 to be breached decisively on the downside, which means the breach should last for an hour or two hours. If that happens then there is no need to wait out, I would advice taking short positions in the market.  On the other hand if we cross 5650, in the same decisive way, then start building up long positions. Q: You have been recommending Zee Entertainment several times through week as well. What is your sense for the next week in terms of media stocks; will there be any sharp moves? A: There will be sharp moves in Zee, Dish TV India and Hathway Cable. There are many other stocks that are giving similar breakouts, similar trends of moving up but media certainly should be an area of focus. Q: The other stock that you are likely to pick up in the coming week is Bajaj Finance. In that space it was L&T Finance Holdings, which was the start performer but it did see some profit taking. What are your views on both? A: L&T Finance is a new listing, so there is very little price history. From whatever we have on the chart tells us that significant higher levels will come and this stock should be purchased on every correction. The correction could be 10 percent as we saw or even more. It is a buying opportunity and it has the potential to double itself. Bajaj Finance is already in an uptrend. It is a sustained upmove and has been doubling itself repeatedly. It made a small flag which is a consolidation pattern that tells us a large upmove is coming again. I think its worthwhile stock for investors and position traders. Q: Why do you like Coal India, Motherson Sumi? A: Coal India has been going through a mild correction and a narrow trading range. One thing that is given in the markets is small and narrow trading ranges, give way to big breakouts on either side. My sense is that on Coal India the breakout will be on the upside. If so, then over a reasonable period of time, a rush towards Rs 365 and eventually Rs 380-400 is possible. Coal India becomes a buying opportunity in anticipationf a breakout that had started on Friday. It is the same story with Motherson Sumi, it was in an uptrend. After that the uptrend flattened out, the stock consolidated. Last week it started coming out of that consolidation and started moving towards much higher levels. These are smallcap ideas but if you buy and hold them, they are good ideas to be long in.