Nifty range getting narrower: Ashwani Gujral

Q: Just 4,720, would you open up a long trade here on the Nifty or is that risky trade?

A: The range is becoming so narrow that you are probably now trading for 40-50 points, that’s not worth it and we are quite close to a break out or a break down. I would wait for one of these boundaries, 4625 or 4820, to break out and to take the decisive trade because now its getting quite risky because today in the morning if you bought, you hardly have 40-50 points on the upside, and the market seems to be getting in a choppy mode back again and it wasn’t able to break down, so chances are that it became a non-event and we should still be in this range.

Q: Infosys was pretty active on the F&O side on Friday, saw quite a bit of open interest addition, what kind of trades you think might be happening on the F&O side of it today?

A: There should be a sigh of relief and people who buy right now probably would get something in the next few days because a lot of people may have been short on Infosys and definitely the kind of ranging patterns the stock is showing and the strength the sector is showing, I think a long trade is justified say for about Rs 1550.

Q: It is Rs 1,470 on Infosys, if you did open up a long in the first few minutes of trade at what point would you book out on an Infosys?

A: I think today could be a reasonable day because the market also seems to be coming back and probably if the Nifty can get past 4,800 maybe today or tomorrow that would be a good area to book out because one has play the range on the Nifty, it is unlikely that Infosys starts breaking out of its range and nifty stays range bound. So one has got used to playing this Rs 100-150 kind of moves.