Nifty may head 50pts higher, traders be cautious: Sukhani

In an interview to CNBC-TV18, technical analyst, Sudarshan Sukhani, s2analytics.com shared his reading and outlook on market and specific stocks.

Mkt to scale fresh high; buy metals, pvt banks: InvestWorks Below is the verbatim transcript of Sukhani's interview with CNBC-TV18. Q: After yesterday's run would you expect to see more traction from the Nifty or would you be cautious on any long trade for the index? A: Yesterday's big run should be something more on the upside. It is not just a one day movement. Market usually takes time to dissipate energies. This time the energies are on the upside. Therefore, little more upside is quite possible, but it may not be tradable. So, to that extent as a trader I would be cautious even though I would expect the Nifty to move another 30-40-50 points before it starts encountering resistance. Yesterday's momentum should see some follow-through. So, the trade then is confusing. Can we get that follow-through? Can we make a profit out of it? I do not know. The larger trend is down and uncertain and even if it reaches 6,200-6,250, the larger trend still remains down. So, from now on a minor uptrend is still in existence starting yesterday. Whatever a trader can get out of it, he should try, but he should not push his luck. FII interest in Indian stocks waning: Franklin Templeton Q: You have Hindustan Unilever (HUL) in your buy list? A: Yes. I have been upbeat on HUL and after that long trading range because people thought that this is a highest it can go and there is a buyback etc. The stock is moving up. On Monday it made new highs. Slowly and steadily it is moving towards four digits, Rs 1,000 figure. I have given this number many times earlier even when it was Rs 500. If that is so then every small breakout is a buying opportunity and for me HUL is one of the better stocks. Monday's breakout should see lot of follow-through today. Q: You have a buy call on Sun Pharma Advanced Research Company (SPARC), which had a big move on Monday? A: It had a big move earlier also. It rallied from Rs 100 to Rs 160 and then it went through a mild correction. That correction was over when big gains came again on Monday. It is a classic textbook chart, a big rally and a flag and a new uptrend. This uptrend gives a target of Rs 200 for SPARC. It will not come in a day but the fact that it has strong momentum which suggests that as a short-term trader one should be long in it. There are no futures here, but what is the harm, buy equity. Disclosure: Sudarshan Sukhani has no holdings in the stocks discussed. _PAGEBREAK_ Q: You are selling Bank of Baroda this morning? A: Yes. I am very disappointed with public sector undertaking (PSU) banks. We have been selling them consistently for sometime now, even when the Nifty was choppy, going up, going down. Bank of Baroda is on the verge of breaking down from a large support level. It is very bearish. I wonder what the message these banks are giving, but the very fact that they have refused to participate in the rally, didn't join the Bank Nifty and are now breaking down, which suggests whatever happens in a choppy market, in a mildly uptrending market PSU banks remain a short sell. Q: You are also short on IDBI Bank? A: IDBI has broken down while Bank of Baroda is on the verge of doing that. IDBI had a trading range and because it cannot go up it is going down. It is going much lower than we imagine. It is not just a day trade. Sell it and wait patiently, let the settlement go by. Q: You have a buy call on Havells India? A: Havells is on the verge of breaking out to new highs. I am assuming that the market is anticipating good numbers. We have already seen how the market is rewarding good numbers by pushing the stock price after results. Therefore, it makes a lot of sense to buy. If it does not work out, that is the trade and one has to keep stop losses and accept the risks that one is taking. Q: How would you trade Tata Global Beverage? A: Tata Global has an excellent chart. It had a decent rally. The rally was not sharp, which was a step by step higher highs-higher lows rally that suggests a low volatile uptrend is in progress then a similar low volatile correction has come in. that correction is over. It is broken out of a down trending trend line, it is giving right signals including good gains yesterday. If this is a renewed uptrend then not only today, Tata Global is going to reward in the next few weeks also. Therefore, starting today take these day trading positions, carry something forward.    Q: Your view on the index. It looks like we have a flat start at any rate? A: It is going to be a flat start for the Nifty and just as the flat start reflects some confusion, traders also should take it easy. It is not possible to have a view or a clear direction everyday. Yesterday morning we had a clear view because almost the jigsaw puzzle was fitting together perfectly. Today is not the case. We have to go slow. Therefore, keep volumes low, buy only on a significant correction or dip or a consolidation. That is the way to trade it today. _PAGEBREAK_ Q: How is Hindalco Industries looking technically? A: It is looking better although at Rs 110, I would not get excited about it. It was Rs 250 a year ago. There is a buying opportunity for short-term traders.  Q: Is there more upside on Titan Industries after the recent upmove? A: It could be but I would be careful. Titan has been choppy. It has given signs of bearishness then sudden signs of bullishness. However, this would only be a couple of days move on the upside. Q: How would you trade Bharti Airtel? A: Bharti is not a day trading play; Bharti is something that one wants to acquire on dips and now one is going through a dip in Bharti, hold it. I think for short-term traders, a small correction is over. Yesterday was a sign and it is worth buying into. Q: Your views on Reliance Industries, technically? A: Reliance is not giving attractive signs. After yesterday's gains one has to be a buyer. That is the only thing I can say. Like the Nifty, wait for a consolidation, intraday dip, take a short-term position but there is lot of overhead resistance. Q: What have you made of movements in Ashok Leyland? A: The charts have turned around. What was apparently a choppy market or even a bear market has now suddenly become a base building exercise. Ashok Leyland's chart is attractive and is giving higher levels, if one is a position trader. It is a very low price stock. I do not know whether any swing trading can be done here but it is worth buying into. Q: At this point any conviction on how you would want to enter the next series and what kind of direction you would want to take on the index? A: If the market go up little more and starts stalling, I would start buying Puts for June, which means I have a mildly bearish outlook. If this rally goes even slightly higher then I would sell into that strength.