Market likely to be in 5400-6400 next year: Sukhani

Sudarshan Sukhani of s2analytics.com feels that there is a sense of disappointment as we head in the next Diwali Samavat. According to him, buying now or lower should see 700-800 points of rallies.

"All said and done 2013 appears to be now another rangebound year, not very good news but that’s how it appears today," he said in an interview to CNBC-TV18. Also read: ICICI Bank may give 30-32% returns, says Sukhani Below is the edited transcript of his interview with CNBC-TV18 Q: What's the drill between this Diwali and next Diwali. Let's ask for a really long term call from you for a change, no short term calls today, where are we headed? A: There is a sense of disappointment as we head in the next Diwali Samavat. The disappointment is that the view that we are going to make new highs, maybe touch 7000 that seems to be dissipating now. That's very unlikely as we take the next one year's preview. What seems much more easier to anticipate is that at some point we are going to go and test the earlier highs of 6400.  So, anyone buying now or lower should see 700-800 points of rallies. This appears to be a trading range now, 5400 on the lower side and maybe 6400 on the upper side which means we could also come back to 5400. All said and done 2013 appears to be now another rangebound year, not very good news but that's how it appears today. Q:  Starting from Anant Raj, give us some interesting picks on the technical side? A: When we see midcaps and say this is a stock we can buy for six months or a year, we want the midcap stock to have moved up before we buy it. Anant Raj has actually doubled itself and this is good news. The stock that becomes a multibagger makes four or six times. It has to double itself before it becomes six times. It is a stock that has now built a base and has given us a sign of strength. I think there is much more upside here. At some point in the earlier bull market Anant Raj was Rs 150-200, so there is a long way to go. Q: What made you pick SREI Infra? What kind of targets do you have? A: Same story applies for SREI Infra. The stock fell from Rs 150 to Rs 20. It has doubled itself. It is now at Rs 28, almost 50 percent rise. This is the time when we know which stock is getting strength. This strength tells us that we should be looking for higher levels. Those higher levels are about Rs 55 immediately. So, the stock may double itself in a year’s time and that’s not all it can go much higher. Q: Why have you picked one large cap bank which is ICICI? A: That is because a balanced portfolio must have large cap stocks. ICICI Bank is on the verge of making lifetime highs. Another 20 percent and it would do that. There is a possibility if Nifty starts a rally there will be a lifetime new high. The bank's price charts have been hanging on the top of the resistance line, not at the low ends. Its probably one of the best large cap banks to own and any portfolio must have it. So, if you are a trader or an investor, a 30-50 percent return in the next one year is possible in this bank. Which is as good as it gets.