Q: What might be the better way to play at this morning if you get a bit of a soft start on the Nifty, would you look to accumulate or would you open up a fresh short on the market?

A: I would look to go short in the market even if there is a gap down then the correct procedure would be to wait patiently for the first 15-20 minutes and any additional sign of weakness, should be used as a shorting opportunity. Because with the short-term trend down, I wouldn’t like to go against that trend and try to accumulate, at least not today. 

Q: What’s your call on Nalco, Hindalco this morning?

A; I don’t have a call on Hindalco it’s been an underperformer, it’s best to avoid it.

Nalco is a much better option. The stock has been going up consistently and any stock that makes new highs, keeps on running up, it is worth buying. But wait for a dip; wait for an opportunity to enter. Nalco is a buy for traders as well as for investors.

Q: Also technically IT how is it looking to you and are you recommending buy call still?

A: We have not been recommending buy calls on IT for a long time. At this point we have to take the market into consideration; the broad market is not very helpful and so there are no buy calls now but the idea is that IT is likely to remain an out performer. So wait patiently and let the buy calls come on their own, may be they will come next week.

Q: What is that you are working with in terms of support levels for the Nifty now that it is trading below 5,000, but what kind of targets do you keep from there on?

A: Nifty is right at support 4,950, so let’s think of that as a range 4,900-4,950 now it’s bordering in that area, any break of this support whether it is 4,950 or 4,900 anything below this is likely to see the Nifty slide by 200 points.

So the scenario is not very cheerful as of now that’s why it is wise to avoid long positions till we see either the support holding or a lower level.

Q: Two stocks form the midcap IT space Mphasis and i-Flex?

A: i-flex is coming out of a long correction, I think it is now part of that midcap IT space, which I like and which is a buying opportunity whenever it occurs.

Mphasis is now news driven, I prefer not to comment on such stocks because it is difficult to say how they will behave but the charts are suggesting that the stock remains in a congestion inspite of yesterday’s news, so that trading zone has not been broken out. If that zone is broken out than even otherwise there is a chart buying opportunity there and perhaps the news can help, but as of now I don’t think there is any buying possible.

contd on pg 2..