Nifty close at 5876-5870 is not good news: Technical Trends

What’s your own assessment, this market’s downside risk- do you think is now higher than any kind of range bound trade that perhaps you would be looking at?

Sudarshan Sukhani: We should have held onto 5900 somehow, that we have not done and if we are going to close at the levels at which we are seeing now 5876 or 5870. That’s not good news for the market, so my suggestion in the morning was that if we are closing below 5895, then the long positions that you are keeping in the Nifty should be closed, that of course means that we are no longer upbeat on the short term trend. We will have to see what happens but the failure to hold price levels is not good news.

What are the recommendations that you are giving out from the banking space right now?

Sudarshan Sukhani: I am not recommending anything in the banking space because you just stay away from it. For the last 2-3 days, we have been meeting and I have been saying that banks are underperformers, so I would not ask you to buy any of the banks.

Now selling short is not a good idea just when we have a news event related to that sector but once the news is over, banks would either be avoid or for professional traders, I suspect would be sells but in any case, please do not try to buy them.