Focus on individual stocks may be back

CNBC-TV18s Head-Markets Research, Anuj Singhal : If you are a Nifty trader, chances are you would have lost money both ways on Tuesday’s trade. While the market has turned structurally weak, a lot of traders would be hesitant to go short with Nifty very near to crucial support zone of Jan and March lows. So there is a chance of focus shifting back to individual stocks. In fact, we saw some of that in yesterday’s trade with stock futures adding significant Open Interest

A lot of reverse arbitrage and arb unwinding opportunities exist in the market and yesterday we saw some of them being taken in Chambal Fertilisers. Today could be the case of Power Grid, where we have a huge over 2 point discount after the aggressive shorting we saw in the stock over last few days

Essar Oil continues to look the strongest stock in the whole F&O space and any corrections here could be used by traders to build positions. On the other hand, stocks like JP Associates and Punj Lloyd are looking weak technically

DISCLAIMER: The author is not allowed to trade in equity markets including Futures and Options. His only exposure to capital markets is via shares of TV18 and Network18 granted to him as ESOPs by the company and investments in some long-term mutual funds.