Sponsored by:

Chat Transcript

02 Sep - 11:00 hrs

Kartik Mehta | AVP- Institutional Equity Research, Sushil Finance


What's a good strategy in the current market senioro this market?

Chat Transcript

moderator: Dear Moneycontrol user, welcome to the Master Your Money chat session with Mr. Bhamre, who will answer your queries relating to derivatives. So fire away your questions!
moderator: If you are not able to view Questions / Answers: Click on Tools -> Internet Options -> on General Tab click Settings button -> Select Every visit to page option -> click OK button
moderator: How to clear Cache from the system: Click on Tools -> Internet Options -> on General Tab click Delete Files button -> Check Delete all offline content & click OK button
guest: today nifty levels
Siddharth Bhamre: Nifty may find it difficult to move above 7670 levels today on the higher side.Support is around 7580.
guest: Dear Sir, i am small invester, give the best share that i can buy
Siddharth Bhamre: If you are investor with lesser capital then risk adjusted return should be important to you. From 1-2 years perspective you may get good returns in large caps like LT, ICICIBANK and INFY
guest: Sir, Can I switch from fixed income fund to equity fund right now in insurance policy. Where is Nifty headed?
Siddharth Bhamre: Looking at inflation and crude oil levels, we dont expect fall in interest rate soon but yes after a year or so they may be at lower levels compared to what they are now, this would give decent returns to you in debt but equity in same period has potential to significantly outperform debt, so equity is the answer. But for you its also important to check with your insurance company about the cost involved in switching and other fees levied on it, if that cost is not significant, you may go ahead and shift in equity.
guest: what rate i should short hpcl about 5 lot july future
Siddharth Bhamre: We are not so positive on HINDPETRO. Last few days upside in stock is not supported by strong volumes in cash market and in futures too it was gone up because of unwinding. 420-435 is good range to initiate some shorts if you are positional trader only. Stop Loss of 448 in spot should be followed.
guest: what is the expected nifty level for this month
Siddharth Bhamre: Though we are not bearish on market we feel markets are in range and are now on the higher side of the range and hence be cautious to initiated aggressive fresh longs now. WE are not seeing meaningful upside above 7700 in this series while very strong support lies around 7450 levels
guest: Sir what is your opinion on banknifty for this expiry
Siddharth Bhamre: Same as Nifty we are not expecting huge move in Banknifty for remaining part of this series. 15500-600 is resistance zone and good support exists around 14800-900 zone
guest: what is the tgt isbank of india
Siddharth Bhamre: BANKINDIA is buy on dips for us and we have target of 331 in mind as of now. New stop loss for positional traders in this should be around 288.
guest: Sir, Can I buy Nifty 7700 CE at this level?
Siddharth Bhamre: WE are not seeing market meaningfully above 7700 is this series, so our advice would be to avoid this trade.
guest: Dear Sir, With budget due in first half of july, what will you suggest for a options trader?
Siddharth Bhamre: There are huge expectations from new government from both capital markets participants as well as middle class participants. This budget may be a mixed bag as expectations are way too high at this point in time. Implied volatility as of now is quite less (17%) considering this event is round the corner. Dont sell July options as now. Be on the buying side of strangle as event is lined up in beginning of new series so time value decay may not be an issue.
guest: Sir, ur take on Hindalco ? Not sustaining above 170....
Siddharth Bhamre: Hindalco is very light in terms of open interest and in yesterdays session we saw fresh formation of long positions. Agreed its not going above 170 but it has not shown major correction as well and whatever correction happened didnt see formation of short positions. So i wont short this stock. Breach of resistance and breakout quite likely.
guest: Is Hindalco buy at cmp ??
Siddharth Bhamre: Yes. SL of 158 in spot
guest: Can we expect a sell off before this expiry
Siddharth Bhamre: Sell off is a strong word/statement. Some correction may happen but it wont be meaningful. So shorting future should be avoided. if you want to play this market as a bear then near 7700 and some now, buy puts to capitalize on your negative view, but dont short futures.
guest: Sir, Can I buy SBI futures lot in this series. What is the strategy to adopt for this month.
Siddharth Bhamre: We are more bullish on private sector banks like ICICIBANK and KOTAKBANK at this point in time. Keep your eye on them.
guest: i had bought idfc at this level can i hold or exit
Siddharth Bhamre: IDFC is a good buy around 125-127 zone. hold on to your position as of now.
guest: Dear Sir whats your openion on my holdings of 75000 Exide industries @ the rate of 149 and 50000 of Crompton greavs @ the rate of 215
Siddharth Bhamre: Both stocks are good from positional perspective. However looking at your exposure some hedging or stop losses are advisable. Buy some Nifty 7700 puts and follow stop loss of 136 and 196 respectively for stocks.
guest: sir i am a small investor,i want a minimum profit for daily trade,which stock is its suitables & what i do?
Siddharth Bhamre: I may sound harsh but i dont believe in concept of making money on daily basis in stock markets. According to me its only positional traders and investors have good probability of making money. Change the way you think about stock markets.
guest: What is your recommendation for new investors in market? should wait for a fall or invest right now?
Siddharth Bhamre: If you are investor with horizon of 2-3 years, dont wait. Equity we believe would give much better returns than any other asset class in said period. Timing the market so you could get it 5% lower may lead to opportunity loss. There are many who have been waiting since last 6 months to invest in this market in anticipation of correction and when correction actually happens people dont have courage to invest.
guest: What should be the strategy for this month in the options.
Siddharth Bhamre: Buy at-the-money puts between 7650-7700 spot levels.
moderator: This chat has now ended. Thank you Mr. Bhamre for sharing your views, and thank you viewers for your participation.
moderator: The transcript of today`s chat will be available on moneycontrol.com soon. If you have any suggestions on this chat you can send e-mail to feedback@moneycontrol.com