For September serise, one could roll short positions keeping a stop loss of 5450 and a target of 5100-5050, says Hemant Thukral, National Head-Derivative Desk, Aditya Birla Money.
In an interview to CNBC-TV18 Hemant Thukral, National Head-Derivative Desk, Aditya Birla Money shared reading on August series, which expies today and how one should approach the next (September) series.
Below is the edited transcript of Hemant Thukral’s interview with CNBC-TV18
Q: Yesterday it was quite a good pullback that we saw from that 5100 lows that the Nifty hit but where do you see expiry pan out today?
A: The bounce back seen yesterday is clearly suggesting that whenever we revisit 5150-5200, we are able to bounce back. It is not crucial is not to see how much respite we get from lower levels, but we need to see how much are we able to head higher. 5330 is the would be the crucial level today.
If we can sustain above 5330 then one can expect some more short covering towards 5400. Otherwise we may revisit 5250-5270 again. It is just because of expiry that we will be holding on to these levels. Overall it is still a sell on rise as we even go forward in September series given the way Options data is being planned. It remains a sell on rise unless we cross 5,450. In September, I will continue to roll my short positions keeping a stop loss of 5450 and a target to revisit 5100-5050 on the lower side.
Q: Would there be any specific stocks you would watch out for index management? For instance there could be some pressure on Infosys today because of the fundamental news of Ashok Vemuri exiting, so some index management any specific stock you would watch out for?
A: Specifically for today, I would be watching out for banks also because banks still have a lot of short positions, which are open. Even though the Bank Nifty continues to look weak, stocks like Axis Bank, IDFC, ICICI Bank, Yes Bank will be few financial stocks where one should keep an eye on. This is just for today because there might be some short covering and some index management which may lead some recovery in these counters.
Q: You have a buy on Steel Authority of India (SAIL) for today?
A: I would want this call to be extended to two-three days. Metals have shown very good rollovers, going forward so I don't see metal rally ending here. In fact the way SAIL has broken from its consolidation of range Rs 39 to Rs 44, one can keep a stop loss of Rs 41-42 and the next target of Rs 48-49. If today we get a dip because of index management, one should go ahead and buy metal stocks.