Sukhani expects small corrections, advices buy

Written By Unknown on Kamis, 07 Maret 2013 | 10.54

Some corrections seen today should be used as buying opportunities, suggests technical analyst, Sudarshan Sukhani of s2analytics.com.

"Traders must understand that there is no guarantee that this market will come down or go up, but we are watching some undercurrent of bullishness on the charts and that could last for 10-15 days," he said in an interview to CNBC-TV18.

How charts of S&P and Nifty are looking right now

Below is the verbatim transcript of Sukhani's interview with CNBC-TV18.

Q: Is it a good idea to keep a long stance running on index or do you think this pullback has run its course?

A: I think it is wise to keep a long stance running. Yesterday morning I suggested that we can close short positions on the intermediate trend hoping to reinstate them on a higher level, so at this point we do not have any short positions. The long positions also are short-term in nature, but the moment favours the bulls, so ride this momentum.

We are technical traders. Traders must understand that there is no guarantee that this market will come down or go up, but what we are only watching on the charts is some undercurrent of bullishness and that could last for 10-15 days. I would assume that is the trend we want to ride.

The small corrections are likely to come and these corrections should be used as buying opportunities. The last threshold will tell us that this market is not going up and that would be 5,700. We are way above that. Of course these levels will change. As of now the undercurrent is upbeat and we should accept that.

See 10% upside in mkt in first half CY13: Antique

Q: Do you think DLF has resumed its uptrend?

A: Yes, it has resumed its uptrend. It did not even break its earlier lows while the Nifty was falling and crashing because the rally was strong, there was a correction. However, that correction held on very nicely.

DLF is giving us a long-term buying opportunity, so we want to buy it whenever we can as short-term traders. There is a lot of tailwind for the long-term buyers also. DLF is a day trading opportunity. Yesterday's rally should see a follow-through today. Even in a choppy market one will probably get it lower or maybe in a minor consolidation. So go long in it.

Q: You are not that bullish on some of the public sector names yet, names like Bank of India (BOI).

A: Public sector banks are divided in two parts. There is a group that is not rallying, that is not giving us bullish signs. Not making basing patterns, doing nothing. Unfortunately, BOI comes in that group. Yesterday's small decline suggests that the two-day rally is over and if nothing happens BOI is likely to keep on going lower. In a choppy market stocks fall and some public sector undertaking (PSU) banks starting with this one are likely to be on the declines list.

Disclosure: I have no holdings in the stocks discussed.



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