In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics shares his views on the market and his preferred bets for the day. According to him, market is likely to be choppy today after the rally last week and so, traders must take profits in half of their portfolio and try to catch some up moves intraday.
Among stocks, Sukhani is bullish on Asian Paints and M&M Financial Services.Below is verbatim transcript of the interview:
Q: What would be the trade on the Nifty now?
A: The trade in the Nifty for the last seven days has been to go long and we were long at 8200. Now, I think that trade has worked out very well. It doesn’t have to work on the same day when the trade is given or discussed.
The theme has been consistent, be long in the Nifty, if you are not long buy now and all three indices Nifty, CNX IT and the Bank Nifty. So, this has been a reasonably decent performance for traders who have been listening to this show.
After a big run up in the Nifty, today markets are going to be choppy. So, if you have long positions as a short-term trader you should take profits in half of them and try to catch some up moves intraday. You don’t have to carry them, carry half of your positions anticipating that this move will have more legs.Q: The Bank Nifty was at a record high, you have picked two stocks this morning – Punjab National Bank (PNB) and Kotak Mahindra Bank, what’s your view on them?
A: PNB has been a slight underperformer in the recent weeks. So, may be it is going to catch up. It is in a very narrow range given the fact that the market is trending, it would be reasonable to expect a breakout from that narrow range to come sooner or later. We will just assume it is imminent given the nature of the Bank Nifty’s rally.
M&M Finance has been doing very well. It has already completed its mini bear market and is now on the verge of making lifetime new highs. It is pushing against Rs 2,330 resistance which could propel it much higher. It is never easy to say it will happen today but we should be positioned because for the Nifty and the indices we said let us be on the long side. So, it did not mean that the markets have to go up on that very day but they did finally. M&M Finance you need to be positioned on the long side; I think that breakout will come.
Q: Do you think the strength in Asian Paints will continue?
A: I think so, outperformers remain outperformers for the life of the bull market and this is one outperformer. Small correction, minor correction then a narrow range and it broke out of that narrow range on Friday; that tells us that the rally has renewed itself and is likely to move higher.
For a swing trader, for a short-term trader you don’t need a big move. Even a modest up move which Asian Paints is likely may have the strength to have even a modest up move gives you the money. So, I would be a buyer here.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
