Trend up, stay long & add to your long positions: Sukhani

Latha: What is the market looking like? We did see Nifty and Sensex show a spirited move in the second half on Monday, more to go?

A: There is more to go. The trend is up. We don’t challenge the trend and much more important, the larger trend is also up. So, this shorter term timeframe movement is in synchronisation with the larger move. That is always a good news.

We have already crossed significant resistance levels. So, you stay long. Add to you long positions. Your stop is somewhere around 8,700. Till then understand that the market is going up.

Latha: Would it be a ditto for the Bank Nifty? Is it showing any signs of strength at all?

A: The Bank Nifty, yes, last day we discussed and I said that the Bank Nifty is now giving signs of a basing pattern and an imminent breakout. That breakout has not happened but I would still be a buyer in the Bank Nifty anticipating that breakout, anticipating a larger up move. Our stops are there, 18,200. With that in mind I would be a buyer.

Latha: What is the strategy on the Bank Nifty itself, almost 18,900 as we speak?

A: You buy the Bank Nifty. If you are using the cash index for a stop loss which is what I am now telling, your stop loss should be 18,700. It is a very tight stop. Bank Nifty was in a narrow range, either it does this thing today or we get stopped out.

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