Technical analyst, Sudarshan Sukhani of s2analytics.com spoke with Latha Venkatesh and Sonia Shenoy of CNBC-TV18. He shared his reading and outlook on the market and also gave recommendations on various stocks.
Sukhani said, “The trend is still down so the market need to go higher to cancel out the short-term trend and then to reaffirm the uptrend. However, as of now, the only trade we have is to keep a stop at 8,800 and maintain short positions.”
However, intraday traders -- just for today -- possibly may see an upmove today, which could be a tradeable opportunity. One should be alert and if we see market stable and moving up, intraday traders can take long trade, he further added.
Below is the transcript of Sudarshan Sukhani’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.
Latha: What is the sense you are getting, the market has been able to defend 8,700 so now you would be hesitant but on the long side?
A: The trade is still to be on the short side if you are a swing trader or a positional trader. While 8,700 has been defended, the trend is still down so the markets need to go higher to cancel out the short-term trend and then to reaffirm the uptrend. That is going to take a few days or time, it is possible. However, as of now the only trade we have is to keep a stop at 8,800 and maintain your short positions. Given today’s market environment that is a trailing stop and you could be stopped out and that is fine.
For the intraday trader -- just for today -- it is possible that an upmove today could be a tradable opportunity. So be alert, if you find the market stable and chart going up as an intraday trader, take a long trade. Now this is very confusing it is a choppy market so that is how it is.
Latha: Do you say maintain the shorts with the stop at 8,800 or would you recommend fresh shorts? I thought you were recommending fresh shorts on an upmove but you ended by saying take long positions if there is an upmove?
A: Short positions should have been taken by this time. If you have short positions, 8,800 is your stop loss. Do not take a fresh short position because we have to defend our shorts.
Latha: What about the long positions scenario?
A: Just for the intraday, just for today it is possible that the market may stage a relief rally and if you see signs of strength in the morning, take an intraday long position and exit by the close of the day. So, there are two different stories when you take an intraday long position, the chances are you will also get stopped out of your short positions.
Latha: What is the stop loss for the intraday long?
A: It would be somewhere around 8,750, either it works or you get stopped out immediately that is the futures price.
Latha: What is the trade on the Bank Nifty?
A: The Bank Nifty had the same pattern yesterday. It found support at around 19,000 and had a narrow range day. For a day trader, there may be a long opportunity in both of them. Because we are in a trading range, the problem will be that we will get buying and selling opportunities once the market moves above 8,800. It is a very confusing scenario but for Bank Nifty if you have a positional trade, your stops are very wide at 19,800. If you do not have a trade, you might like to go long just for the day.
Latha: So the scope has opened up for an intraday long for day traders?
A: That is right; in the morning and even now there is a possibility of buying the Nifty inspite of the 50 points rally. There will be some points on the upside hopefully during the day but as I had explained that is an intraday trade and it is little confusing. However, the markets are choppy so we have to accept it.
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