Don't play relief rally to build longs; stay short: Sukhani

Written By Unknown on Kamis, 08 Agustus 2013 | 10.54

In an interview to CNBC-TV18, Sudarshan Sukhani, s2analytics.com shared his reading and outlook on market and specific stocks.

Also Read: Cues that will decide Nifty's course today

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

Q: Yesterday was a choppy day but we still ended in the red. What is the view for today?

A: This is a strongly trending market. We are trending on the downside. Once we have a strong trend, intraday trades become difficult to take because a lot of the movement comes on gaps. Therefore, the view remains that this is a strong trend, we are going to break; we have virtually broken 5,550 level but we are going to break it decisively. So, that is a qualitative adjustment. We will break it; we are moving towards 5,000-4,900; difficult to say when.

In this environment the trade is to be on the short side. I would not even venture to take a relief rally, intraday. It is possible that we may get one today. It could come any day. If that happens, we step aside because the first relief rally is going to be treacherous. If a correction starts on the upside, a sustained upmove of 100-200 points then maybe part of it would be tradable. However, for today market is likely to be choppy, any rally will be sold into. That is what I would do. Those who still do not have short positions, use the rallies to build those short positions. Now buy September Puts.


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