Nifty won't breakout from its current range soon: Sukhani

Technical analyst Sudarshan Sukhani of s2analytics.com doesn’t see the Nifty breaking out from its current range anytime soon. The Indian indices - the Sensex and the Nifty, closed up 1% on Friday. The Nifty ended at 5,695.55, within striking distance of the 5,700 mark.

Also read: Expect Nifty to breakout from current range in November "While we consolidated last week, we also rallied almost a 130-140 points from the lows that we recorded. After this kind of an upmove, the markets normally consolidate again," he said in an interview to CNBC-TV18. Below is the edited transcript of Sukhani’s interview with CNBC-TV18. Q: Do you think this week there is a breakout in store? A: No, I do not think so. While we consolidated last week, we also rallied almost a 130-140 points from the lows that we recorded. A lot of the Nifty rally was built in. It has already been done. After this kind of an upmove, the markets normally consolidate again. We are back to that consolidation mode. I will not even refer to the trading range, because viewers, investors and traders everyone now is aware that we are inside it. I do not see this trading range breaking so quickly. Q: Lot of midcap earnings will be announced this week. Does Sintex continue to be a sell? A: Sintex continues to be a sell. While the Nifty was moving up and down, Sintex did not contribute to that rally at all, in the sense that it did not participate with the other market leaders with midcaps. It had a very tepid rally. That seems to be fizzling out. There is more pain on the downside. Sintex had become a sell earlier also and it continues. Results can do anything, but, there is more downside here. Q: A constant feature in your buy list is Hero MotoCorp. What is your take on that stock? A: Yes. Every time there is a dip we try to buy Hero MotoCorp. Usually we succeed and sometimes it does not work out. The view is that if we want to do anything with Hero, it should be to go long in it. Hero is now on the verge of a breakout. Since I am assuming that the markets will be choppy today, I do not know if this breakout will work today itself, but if it does, go long in it. If it starts moving above, do not wait. This is a breakout that could take it to Rs 2,100, eventually for a positional trader. Q: Do you think DLF is headed to sub-Rs 200 soon? A: I think so. We had a very small rally in DLF. This was in sharp contrast to much better performance by HDIL and other midcaps  like - Sobha, Prestige. Many of the midcap real estate stocks did much better. So, in the sector itself DLF is an underperformer. On Friday everything went up, but that seems to be over. In a choppy market, weaker stocks are going to get battered and bruised. Unfortunately, DLF comes in that category. The small rally is over. The downtrend is now resuming, Rs 190 are the target, but I would assume that it is lower than that. _PAGEBREAK_ Q: Century Textiles pop-up were seen on your buy list before as well. Are the charts looking good? A: The charts are excellent, which is why it keeps on coming in my buy list. Fortunately, for us it keeps on rewarding people who buy. On Friday, Century had a very big up move. That up move was a confirmation of a flag that it was making. A flag pattern is a dream for bulls. It comes midway in an advance. That really means there is almost 100 points of gains left in Century, before we can start worrying. Obviously that will not come in a day, it is a process. But for short-term traders, for people who want to enter today that big up move on Friday should see follow-through. Any dip in Century is a buying opportunity. Q: You are not that bullish on something like an Aditya Birla Nuvo. A: No. The reason is that Aditya Birla Nuvo should have gone up. It should have crossed Rs 1,000, it did not do that. It is drifting on the downside now. It is not a bear market, but it is a deep correction that is in the offing. So, the sense is that much more declines are likely to come. Traders can easily trade a correction, if we feel that there is more downside left. It is the way A Birla Nuvo will go to. Investors do not have to do anything. They just have to wait till the correction is over and buy it. But yes,  there is a trading call on the downside here.
Q: TCS has been making higher tops and bottoms for the last fortnight. What kind of a target price would you put there? A: TCS has a very modest target for the day of Rs 1,360, but that is not enough. Eventually, it should make lifetime new highs. TCS was in a consolidation for almost one and half months. It is now emerging out of it. It is not just TCS, the CNX-IT index is a trade on the long side as are the other IT majors. But TCS is the best of the lot. The problem here is that if the markets do not move up, then a lot of buying and selling will become choppy. But, in a choppy market if you see some declines in TCS, go long. Even intraday traders should profit by a long position here. Q: How would you approach something like Titan that had a big run last week? A: I would buy it. But, today is not a day to buy anything. In general, Titan is a buy on dips. Today is a day to take profits and step aside. Q: How much downside can happen in Crompton Greaves after the disappointment in the result? A: Rs 110 is probably a place where Crompton Greaves will again find support. On a day to day basis, Rs 116-117 is an immediate downside target. Q: Renuka also reported weak numbers. How do the charts look? A: Renuka still remains a buy on dips. This is a dip as much as possible. So, keep a tight stop loss. If the stock starts moving up, consider buying it. Q: Apollo Tyres has had a great run. Is the uptrend still on? A: It is on, but again not necessarily today. Apollo Tyres had a bad day on Friday. Let that disappointment go away and then it becomes a buying opportunity again. Q: How about L&T? A: It is a buy. But, I have to keep on repeating that today is probably not a good day to buy anything. Q: How about Cipla? That has come on your list before today. Earnings should be good for Cipla. Would you still continue to back it? A: Yes, that is an exception. I would buy Cipla toady also. Q: If you had to short sell something from the index which stock would it be? A: I do not know if I want to short sell anything. But it would be the weak PSU banks.