Rally has more legs, buy on dips; 5800 key level: Sukhani

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

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

Q: We have made our way back to 5,700, what is the approach today?

A: We got the market rally when it was beginning. The rally is not over yet. It is a correction in an ongoing downtrend and there is no confusion on that. The corrections can be tradable and this one was.

However, even today one should be a buyer on dips so this market can have more legs, especially if one is buying 30-40 points lower then for intraday traders there is more momentum on the upside. The positioning is not on the short side for the day. This rally will end at some point of time but today is not that point of time.

Q: What would be the goalpost you would look at?

A: We are looking at 5,810-5,820. So, we could be having 100 more points here and if we buy on a correction on a minor dip then there could be 140-150 points of gains possible. So, that is a tradable bounce. At 5,800 there would be strong resistance, if we do reach there.

However, something else is going on and that is on the Nifty because the big moves are coming in the rupee. The rupee in spite of all the volatility, we have seen it come down, go up and for the last ten days or rather two weeks the rupee is in a trading range between 60/USD and 61/USD. It is now on the verge of breaking out of that range. So, if the rupee embarks on a journey northward, looking above 61/USD and then going towards 63/USD then the Nifty is not going to attempt 5,800. If the rupee stays stable, the market should make that attempt. Therefore, both of them are related today.

More to come..

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