11,900 to be a crucial level for market: Choksey

According to Deven Choksey of KR Choksey Securities, 11,900 is a crucial level for market. As at this level, he thinks that the market could see some resistance as well as some profit booking.

But he is confident that the markets will see further upside, as the news flow coming in, particularly from the global front is positive.

Excerpts from CNBC-TV18’s exclusive interview with Deven Choksey:

Q: This market continues to move up, where are we heading do you think?

A: Clearly, at this point of time, 11,900 around levels is bit crucial because at this level, market meets some amount of resistance and also there is a possibility for profit booking. So to that extent market is moving little cautiously.

Unless there is some very important triggers or the news, which takes it, pass 11,900, it may wait here for sometime. Do some amount of profit booking and then possibly take a next step forward.

There is no doubt that the upside in the market is possible given the fact that most of the news which are coming in are positive, particularly from the global side. Oil prices are easy; inflation rate hike issues are now settled to a great extent.

What we believe is that the money, taken out by the hedge funds from the oil and oil futures, if they flow into the equity market then possibility of liquidity driven rally can also take place.

So all in all, it is positive as far as the upside movements are concerned.

There are negatives as far as the Q2 working expectations are concerned in some of the companies and pockets.

There maybe some impact but that would be taken up maybe another two weeks from now when we will all come out with some amount of estimates on earnings. But as of now the mood is quite positive. It’s consolidating and maybe we will see an upside once it crosses above 11,900.

Q: How has rollover been, any cause for concern or hick ups in tomorrow’s trade?

A: Not really. It is quite smooth as of now. I see that most of the rollover is getting through. Maybe by tomorrow, we will have a better picture. By the end of the day, we will know exactly as how much is going to be left out for tomorrow.

But more or less it is in line with the expectation. As such the majority of the position didn’t get built up in earlier month. So to that extent the concern is less. Maybe we are going to see smooth track hereafter. 

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