See Nifty touching 5000-5050 soon: Sudarshan Sukhani

In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com said, Nifty is likely to retrace some of its losses and rise higher. According to him, the first logical target for Nifty is 5,000-5,050 and it should reach those levels in a day or two.

Below is the edited transcript of Sukhani's interview with CNBC-TV18. Also watch the accompanying video. Q: It looks like we may play for a bounce back. How much would you give the market if indeed it does manage to retrace for its losses? A: I am hoping it will retrace some of its losses, move up. The first logical target is 5,000-5,050. The Nifty should reach there in a day or two. That should come about without much effort. What happens from thereon is something that we cannot predict. So, we will wait for the market to begin planning after reaching that trading band. Q: Dena Bank is in your buying list today? A: Yes. Most banks have gone through a very deep correction; thanks to the State Bank of India’s results and the markets were oversold. We have seen each of these banks start beginning a rally. Dena Bank was in a trading range for the last few days, so its correction was a little less than others. It was also standing at a significant support level at Rs 77-78. So stock at support, stock in a trading range and now moving up, it’s almost a perfect setup for a buying opportunity. I am assuming that the Nifty will go up some more, so it makes sense to buy banks. Q: Do you think Bata India has resumed its uptrend as well? A: Yes. Bata has now made those new highs. Lifetime new highs must be bought especially in a stock, which is repeatedly doing this. In case of Bata we had a trading range that lasted for almost one and a half month. So, the stock is moving out of the trading range and into lifetime highs. Both qualify as buying opportunities. Do not worry about valuations in this case. Just go long. Q: Suzlon Energy is good for more? A: It is good for more because one has to see the context. It fell from Rs 30 to Rs 18, it has cracked 40% on a base of 30. so, there is a lot of headroom here. Suzlon touching Rs 18 tells us that it was a double bottom. It may have been because that was strong support or  a previous low. Bouncing from that level tells us that if not anything even a relief rally in a high beta stock like Suzlon could go to Rs 24 minimum and maybe Rs 27-28 easily. Q: Godrej Industries was a strong performer yesterday? A: This market is turning around slowly. It may be just for a relief rally. But Godrej came, dropped to Rs 225-230 which was a support level, so there was a decent correction from Rs 275 to Rs 230 and now one is seeing a bounce back. One will find out whether it is a bounce back or a new uptrend starting in Godrej. In either case one should be long because support levels are holding. There is a target of Rs 255 on this stock which can easily be exceeded.  Q: You have got buy on Power Finance Corporation (PFC)? A: Yes, because PFC has been battered out of shape. It reached its pattern target of Rs 140-150 and after that it’s not falling anymore. It is more of a reversal trade. One doesn’t know how this is going to work out, but if it works out then it is a fairly high beta space stock for some unknown reason. So, a significant rally is possible for long only traders and the downside seems to be quite limited. Risk is low and incase it rallies, reward is pretty decent and high, it is available in futures. It is a buy.
_PAGEBREAK_ Q: India Cement is the only sell in your list today? A: India Cement is making new lows, in fact, the cement sector itself is in a deep correction of some kind and India Cement is the weakest of the lot. I do not think one wants to sell in a market that is optimistic at least for the time being. But if at, all a short sell is to be looked at cement as a sector and India Cement should be considered as the weakest of them.  Q: Would you approach the market with a long bias today if this is the quantum of the game and at around this level what would you look to do? A: We are already carrying long positions from Friday and they should be maintained. I think we should cross 5,000, not necessarily today. Today the bias remains long because the short-term trend according to me is on the plus side. So any intraday dip should be used to buy. Q: What sense are you getting from Infosys’ chart? A: I would say that was just a random occurrence. Infosys is finding repeated support at the lower levels of Rs 2,300. Today, given more conducive market environment Infosys is a buying opportunity for day trader. It can do well today. Q: What about TVS Motor Company? A: TVS Motor is making new lows. It needs to be sold into. The fact is that it is at Rs 32 and today is a good day, so selling need not take place. But the trend is down and it has to be a short candidate. Q: Any thoughts on Kotak Mahindra Bank? A: Kotak Mahindra Bank is a buying opportunity and most banks are. Kotak is finding support at Rs 525-530 level. Different banks have found support at different levels. There is a rally. This rally could easily go back to Rs 580-590 or Rs 600 level so there is more headroom here. Q: Any recovery on Jaiprakash Associates? A: Jaiprakash Associates has a remarkable reversal pattern. It’s on the verge of a breakout. An immediate target of Rs 66 and an eventual target of Rs 71-72 is likely. It’s a good stock to buy for few days, not just day trade. Q: What about Maruti Suzuki India’s chart? A: It is not a screaming buy. Yesterday it rallied a lot. Given the short-term trend is up one would want to buy Maruti, but there are many other opportunities that Maruti is not one of the better buys. Q: Is Dish TV a disappointing chart? A: No, it is not. It’s building a base. Base building is always an exercise that causes some dismay, some time it comes down, some time it goes up but the bias in Dish TV should be on the long side. Whenever the base breaks out above Rs 62 it will see a big up move. Even from current levels a rally to Rs 62 is quite likely before it encounters resistance. Q: How about Eveready Industries India technically? A: It is a buy because it touched, fell, found some support and yesterday it opened with a gap but that’s the only thing going for it. It’s fallen so much that if somebody is compelled to trade in it then will have to take a long position but ideally one would want to avoid it. Disclosure: I do not have holdings in the stocks discussed.