Continue to be bullish on Nifty: Sukhani

Sudarshan Sukhani of s2analytics.com continues to be bullish on Nifty and expects it to start with a gap. "If the gap is maintained and the market is cheerful, then in the afternoon a lot of good things can happen to the bulls," he told CNBC-TV18.

Below is the edited transcript of the interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: Trading call on the Nifty given what is happening on the global screen today? A: Last morning we were bullish and that stance continues, in fact, today would be an interesting day because we are likely to open with a gap and if this gap is maintained then chart patterns starts little more bullish. It’s some news day today and as you said it doesn’t affect now but still its news. So Infosys result should be put at the back and then in the afternoon if the markets are cheerful, if the gap is maintained, the morning opening gap that would be the time at which a lot of good things can happen to the bulls. Q: Some sugar stocks did well yesterday, would you be buying Balrampur Chini? A: Balrampur Chini remarkably outperforming all the sugar stocks. Balrampur Chini is at its new highs for this uptrend while Shree Renuka and even Bajaj Hindusthan are languishing at the lower end, its true they went up yesterday but Balrampur Chini is significantly outperforming. Why it is doing that that is not for me to know even but want to buy it. It has broken out of a trading range and it’s not going to stop. Rather than make it a day trade its wise to buy it today on the back of a breakout yesterday and hold on to it as a position. Q: Is IndusInd Bank a buy today? A: IndusInd is a buy, new highs for the stock and you want to buy new highs. With the banks there is ofcourse the problem of news not being what it is but at least for today, I think this will rally. My advice to the traders is do not buy it in the morning, there will come a dip in the day when people will get nervous that is the time to enter banks now. Q: Today you have chosen to be short on Polaris? A: Yes, that required a lot of courage because I don’t trade and that is the reason why I closed my positions yesterday afternoon at close. I prefer to be out of the market on any kind of news. But Polaris charts are not conducive. At the worst we are entering into a downtrend and at best it will go through a reaction. In either case it’s looking at lower levels. I don’t think whatever Infosys says will affect Polaris except maybe for a couple of hours. So the charts and the trends are down.Polaris is a short sell infact there is a rally which starts showing signs of fizzling out then sell in strength. Q: Your view on about Arvind? A: It’s a buying opportunity, Arvind has been falling. It started what now, I think is probably a correction rather than a downtrend although it’s fallen a lot. For the last ten days, its making a trading range, It is still in that range, hasn’t come out of it but the signs suggests that a breakout on the upside is more likely. So here we are taking risk and saying we are anticipating a breakout and today could be a good day for Arvind and if that is so then we are participating in the breakout rather than buying after it. There is a stop loss, such trades always have to be with a stop loss which should be strictly followed but beyond that Arvind maybe completing a correction and it is certainly a positional buy. Q: You continue to be negative on Jain Irrigation? A: Yes, it keeps on disappointing. It is remarkable, how a stock can fall so much then go through what we now understand was a relief rally and then again begin a downtrend. It is not going up in a hurry, the lower levels are coming. The reasons for that are unknown but I would be short on it. In fact, it’s a classic sell on strength, sell on breakdowns. In either case we want to be short in Jain Irrigation. _PAGEBREAK_ Q: A word on Hero MotoCorp? A: That is a favourite and that keeps on coming in my list. It was at the lower end of a trading range, again it’s looking to bounce back. So at worst maybe we can see the upper end touched again Rs 2,070-2,080 and whenever it breaks out of that resistance level then Rs 2,200 should be an immediate target. Q: We won’t have a gap up opening, we will probably have a mild down opening. Will you use that opportunity to go long again since you closed your longs yesterday? A: No, I won’t, this is a disaster. Market that was going to open 50 points higher is now going to open 10-20 points lower and this is not good news. So the message to the viewers is that this is the reason why I never trade on big news days and don’t carry overnight positions. Half an hour ago, we would not have thought that the Nifty is not going to gap up, it was taken for granted. So this is not a time to build long positions also. We have to wait till the day and till the afternoon before we make that decision. Q: How would you approach some of the technology stocks the pre-opening doesn’t seem to be boarding well? A: They are now all opening with a gap down, Infosys and probably TCS but the approach would be to sell them now. This is a breakdown of significant proportions on Infosys and probably on TCS. So the trade here is that we don’t think this is a dip, so let us go and buy it because we are getting it lower. No, it is not. It’s now going to be something very different for both these stocks. So we go and sell it whenever we can. Disclosure: I have no personal holding in any of the stocks discussed.