Technical analyst, Sudarshan Sukhani of s2analytics.com spoke with Latha Venkatesh & Sonia Shenoy of CNBC-TV18. He shared his reading and outlook on the market and also gave recommendations on various stocks.
Below is the transcript of the interview.
Latha: We are moving lower and lower but not breaching 8,000. Do you think it is only a matter of time and today could be that day?
A: A breach of 8,000 is likely to occur. I cannot say whether it will happen today or ten days later but the trend is very clearly down, pattern targets are much lower. We have discussed the possibility of even reaching 7,000. It does not have to come but the very fact that it is there, visible, giving a target is worrying. So, 8,000 is likely to give way.
Markets do what they want, whether the Nifty bounces from here, creates a sense of hope, I cannot say. The trade is to be on the short side of the market.
Latha: Is there a short case in the Bank Nifty today?
A: There is a short case in the Bank Nifty also. For today, on a day-to-day basis, the markets are deeply over sold. We never know when a bounce can come. And the bounce, as I said, can also create a sense that 8,000 is holding and the worst is over. So, on a day-to-day basis, traders should look at the opening price, the range and the sense that channels give them, but on a longer-term, that means a few weeks, the Bank Nifty at current levels is a perfect sell.
Latha: This recovery in the market 8,100 is within striking distance. Will you use this to sell or is the market telling you that the trading bounce could go higher?
A: Market is saying the trading bounce could go higher, 8,000 as support is holding and today after yesterday’s narrow range day we have seen a decisive breakout above yesterday’s highs. For an intraday trader, any dip or consolidation today is a buying opportunity, this is an intraday trade.
Latha: So for a positional trade it would be otherwise?
A: Positional trader has a 8,100 stop loss, which is think is going to get triggered but they would still make money because the short was done at 8,300. So it is a good trade. However, for positional traders above 8,100 you step aside and don’t take a position.
For stock specific ideas, watch accompanying videos.
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