Market choppy; take only day trades: Sudarshan Sukhani

A: The takeaway is that the market is choppy and in a trading range. We had a sharp downtrend; we caught most of the rally on Monday. We anticipated it and now market is going to probably remain choppy, decide where they want to go. However, yesterday was a sign that the rally is not going to be sustained but that doesn’t mean that a decline is imminent. It means market like me do not know what will happen next. Therefore, there is a well defined boundary fortunately; we do not have to wait for those boundaries, 8,600 on the upside and 8,350 for the Nifty. Inside this trading range on Monday also I said not to take carry forward positions, take only day trades and that advice remains valid.  

Latha: At what levels would you trade Bank Nifty and what are the goalposts on Nifty?

A: If one is an intermediate term trader then he could sell the Nifty and have a stop that goes above 8,650. One can sell the Bank Nifty. This market could rally again. It is not that the rally is over and one has to accept that rally; eventually the Bank Nifty is going much lower. A very large distribution has been made, confirmed. It usually doesn’t go wrong.

Latha: We are at the start of the new financial year. If you have to look one year down the line, how is the Nifty looking and more importantly what would you latch on to?

A: Down the line if we close 2015-16 at 8,500, where we are now, we will be very happy and lucky – that’s an optimistic scenario. We expect a lot of choppiness in between but if we come out of the choppiness then that’s good news. I would latch on to pharma. There is a big buzz in pharma. It is the next IT.

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