In an interview to CNBC-TV18, futures and options market expert, Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money shared his outlook on market and various stocks and sectors.
Below is the verbatim transcript of Thukral’s interview with CNBC-TV18.
Q: Would you keep your longs open or take profits here?
A: The way the data is shaping up has taken everybody by surprise. Everybody was looking for a pullback till 5,850. However, now that has moved into a zone where bears have a real problem on hands because the way the Puts have been moving up, 26 lakh Put added up in 5,900.
Nifty is trying to form a base above 5,930-5,900 zone. Till it holds that zone I do not mind going long or even keeping longs there. We will retest 6,030 levels on the upside and then lookout for some correction or a pullback of not more than 5,950-5,930 retracing it back. However, bulls are back in business, so I will continue to hold my long positions. Yes, I will keep a stop loss of 5,890, on cash side and target of 6,030-6,050 on the upside.
Q: You have a strategy on IndusInd Bank this morning?
A: Yes. In the last one week’s data the private banks have added long positions, whereas public sector undertaking (PSU) banks have moved more on short covering and keeping the derivatives data point views that the stocks, which have fresh longs are stronger than the pullback stocks.
IndusInd Bank on Friday has seen an open interest addition of 8 percent along with an increase in premium, so suggesting that long open interest has been built-up here. The stock technically also has managed to cross above that Rs 425-430 zone, which was acting as a resistance point for it. So in immediate short-term we feel that IndusInd Bank can retest Rs 445-450 levels. Traders have to keep stop loss in Rs 425-430 support zone but one might see IndusInd Bank outperforming the private banks here. Therefore, look for a target of Rs 445-450 in immediate short-term.
Q: From oil and gas space you have picked Oil and Natural Gas Corporation (ONGC)?
A: On Friday all the oil marketing companies (OMCs) Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Gas Authority of India Limited (GAIL) have seen good delivery based volumes as well as open interest increase. GAIL had seen more of short covering, but ONGC has seen the maximum open interest being built-up on the long side. Also the Call unwinding at Rs 320 levels and pushing at Rs 340 suggesting that there is further scope of increase in ONGC from the current levels. Therefore, I am looking at a target of around Rs 336-340 on ONGC. Yes, traders have to keep a stop loss, so I would maintain a stop loss around Rs 310-315 zone that has been a strong support for it, but definitely it seems that ONGC is now opening up for another at least 4-5 percent gains from current levels.
Q: From the stock Futures side do you think most of the short covering is done or is there still a lot which needs to be?
A: I have a feeling that most of them are covered now. On Friday fresh longs have started to build-up because Nifty has managed to cross 5,930 on the upside. So, this momentum should continue and fresh longs should come in, in the picture because if Nifty fails above 6,000 then I am expecting fresh shorts to creep in again. I have a feeling except for midcap stocks like midcap PSU banks or midcap real estate or infrastructure there are still some shorts left but in largecap, most of the shorts have already been covered.