Nifty in downtrend, try to go short: Sukhani

Below is the transcript of the interview.

Latha: Anuj Singhal was telling us that the Nifty is evenly poised between going to 8,180 and 8,300, what is your call?

A: The Nifty is in a downtrend. That is the easiest call that I can make. We should be short or we should try to go short. Our stops get tightened, move your stops to 8,310 that is the best trade that we can visualise. It is possible that the Nifty could go to 8,300 but because the trend is down, we would rather be on the bearish side of the market unless proven otherwise.

Bank Nifty is not a short sell. The Bank Nifty has been outperforming. It is holding on to its 18,000 support level although some minor forays below it have taken place but they have been bought into. So that is interesting because everything else is a sell except the banks.

Latha: Is the market opening giving you a sense that you can persist with short trades and increase them?

A: It is just saying that the trend continues to be down and we should stay with our short trade. It doesn’t mean the markets cannot jump during the day. It is F&O expiry, a lot of volatility is expected. The trend is very much down. Just the opening rates at least tell us that nothing has changed.

Sonia: We were discussing the mood of the market earlier which continues to be very bearish but just wanted some more levels from you on what the May series is looking like? What is the initial sense you are getting about how much the base for this market could move down to and what the range for the series could be?

A: For whatever it works, I think there is support at 7,700. So maybe we could move towards 7,700 not exactly that point, somewhere there between now and 7,700. The highs are now probably capped at 8,600.

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