Mumbai: Technical analyst Sudarshan Sukhani believes that the markets will follow a bullish pattern. He feels that the market trend continues to be upward.
Sukhani sees a well-defined trading range between 3,050 and 3,200. He also feels that 3,200 levels will be broken soon.
He further states that until the Nifty goes below the 3,000 mark, he will continue to maintain a bullish stand on the market
Excerpts from CNBC-TV18's exclusive interview with Sudarshan Sukhani:
Q: Which way is it going, up or down, because it seems to be a complete yo-yo between 3,000-3,200?
A: It is still going up. My trend indicators continue to point up. We had a bullish pattern from which the Nifty broke out, that pattern remains valid. So I just go by my charts, that keeps things very simple.
So my charts tell me that the trend remains up. Inside this up move, we have a trading range, a very well defined trading range between 3,050 and 3,200.
Now it can move inside this range for a long time.
I do not know how many days. But I would assume that at some point of time 3,200 would be broken. I would get worried and say that my trend indicators have gone wrong if the Nifty were to slip below 3,000, till then I am bullish.
Q: Till it does move in that range of 3,050 to 3,200, as a Nifty trader how do you position yourself?
A: Since my broad trend idea remains up, what I am looking at is to buy at lower levels, which was what we did on Friday. On Friday the Nifty came almost to 3,050, just a little above that, and that was a perfect buying opportunity.
We do not know if and when the Nifty will break out, therefore take profits, stay put, again buy on a dip. One has to play this small, narrow trading range until the Nifty decides to give us a bigger move out of it.
Q: What do you do with technology, because we keep getting mixed views on what technology charts look like. What is your sense when you look at Infosys, Satyam?
A: I get a sense that the rally is almost over for technology; that includes all the three-four, excluding HCL Technologies which still has some signs of a bullish move.
Even for Satyam Computer Services where I was upbeat earlier, and Wipro, Infosys Technologies, TCS. Infosys especially has come to Rs 3200 plus where it was last time and the chart pattern suggests that there is a lot of exhaustion at higher levels.
So I am assuming that some very good news has to come tomorrow for that stock to move up even on normal guidance, it may not do so.
Q: How are the Bharti Airtel charts looking now after the rally of the last couple of days?
A: It is looking very nice; it has been outperforming that we all have seen. The charts tell us that if the market remains intact, it does not have to go up a lot, basically if the market does not fall, then Bharti Airtel would move to new highs.
Obviously something is going on inside that stock, which is getting reflected in the chart patterns. But this is a time for traders to consider buying on dips and going long and having the courage and conviction to do so, Bharti should be the top name on that list.
Q: Midcap stocks - South Indian Bank and Eicher Motors?
A: South Indian Bank did something very unusual. It went up a lot yesterday and it was trading in a narrow range for 6-7 days, which I assume, was a signal that it is going to do something and it did that.
The big range that it built tells us that this is only the beginning of an upmove. So for anyone looking at banks, looking at trading a opportunity, South Indian Bank is an excellent choice to go long, even after yesterday's rally.
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