Sudarshan Sukhani advices to sell on rallies

Sudarshan Sukhani of Technical Trends feels that the market may not bounce back today. If the 3800-4650 levels break then there is a target of 3000. Moreover, he feels the global enviornment is not good, so any recovery or a rebound seems difficult. "The trading would be to wait patiently and sell on rally for today."

Here is a verbatim transcript of the exclusive interview with Sudarshan Sukhani on CNBC-TV18. Also watch the accompanying video.

Q: We started the day once again well under 3,800, do you think we will bounce back again like the last four times? How would you trade?

A: I do not think we are going to bounce back today. Once we break down from 3,800, the technical picture changes dramatically. We have that very large trading range between 3,800 and 4,650, which has lasted for almost four months. Now that range is in imminent danger of being broken down into. That gives us a target, which is roughly more than 3,000. It may or may not happen but the trend is visible, it is down. We are breaking down from a significant pattern, so broadly the bear market is alive and kicking. For today, the environment outside India is so bad that the idea of a recovery or a rebound is difficult. The trading would be-wait patiently and sell on rally for today.

Q: Do you have any levels in mind for trading?At what point you cut your shorts if the market gaps down and at what point you initiate fresh shorts again if there is a pullback for a trader?


A: I am assuming that the market will gap down and anything close to 3,800 then, will be an excellent level at which you can initiate a short position.

It's a difficult call on where to cut shorts because if the market closes at the lows of the day then I would probably carry forward these short positions for tomorrow. So on the downside; we have a range, which is around 3,600 where some support comes in.

Certainly if the market closes or comes near 3,600, then close your shorts and get out of the market.

Disclosures:

It is safe to assume that my clients & I may have an investment interest in the stocks/sectors discussed.

Source: MoneyControl