Close short positions and take profits : Sukhani

Latha: What is the sense you are getting on the Nifty itself? Will 8,450 hold, is that the big number you are watching? Is it short gaps down opening? What are the charts telling you?

A: We will see how the market opens but the key point is what to do with the short positions that we already have. There will be a lot of volatility today because it probably is going to cover up for all the quiet markets we have seen and in that volatility on any dip below 8,450 traders should take profits, close their short positions.

We are coming to strong support levels. 8,470 is a support, then 8,350 is a support so that is a zone of support rather than a number. Inside this support, market will then stabilise, decide what they want to do next. It is much better to take money off the table. We have had some good trades on the short side, two trades both profitable as of now. So the trade for today is, if you are short, take a profit. If you are not short or do not have a position, today is not a day. We want to find if support holds or not.

Latha: What is your take on the Bank Nifty itself and what is the status of some of the key candidates in the Bank Nifty notably ICICI Bank and may be State Bank of India (SBI)?

A: ICICI Bank has a bearish chart. It is giving confirmation of distribution and that is a pity. Bank Nifty is doing the same thing. At 18,300 it is breaking down another time, a much larger breakdown. Now these large breakdowns, should they occur, will not come in a day but the theme then is that it is continuing to go and drift down, may be eventually see 17,000 for the Bank Nifty. I am not bullish on this market currently, either we go short or we step aside. There will be inevitable relief rallies but the view is mildly downbeat.

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