In an interview to CNBC-TV18, Hemant Thukral of Aditya Birla Money said that he still feels that the Nifty has strength to go up. He sees resistance around 6080 mark, but beyond that he believes 6150 should be the next target.
"In the next one week to ten days bullish trend will continue", says Thukral.
Below is the edited transcript of his interview to CNBC-TV18
Q: What kind of targets are you keeping on the Nifty now?
A: I still feel that Nifty has the strength to go around that 6130-6150 mark. As last time the Put writers are really consolidating their position now. 5900 and 6000 Puts on weekly basis have added 25 lakh shares each. So, that itself is suggesting the strength or the confidence within the Put writers that is coming up. However, for my long positions, I will keep a stop loss of 5950 that is adjusting the premium of both the Options. I feel slight resistance around 6080 mark but beyond that 6150 should be the next target. In the next one week to ten days bullish trend will continue and let us see how much we can achieve. However, 6150 is the final target of this rally.
Q: Are you tracking Karnataka Bank which had a big move on Friday?
A: Yes. There is specific reason behind choosing Karnataka Bank. First, all midcap banks have added big open interest in last week. However, Karnataka Bank has corrected very sharply from Rs 198 to Rs 160 levels. After consolidating between Rs 162 to Rs 174 for a week, on Friday it managed to cross and close above Rs 174. Also it was on the back of 13 percent fresh long positions on the same ay itself. That shows that the buying interest is coming back. We expect Karnataka Bank stock to retest Rs 195-Rs 198 band. The stop loss from traders has to be maintained. So, from where it has broken the range that is Rs 174 should be maintained as a stop loss going forward.
Q: A big mover on Friday was IFCI, 11.5 percent up move, you have a strategy there today?
A: Yes. The way the open interest has been added up, it was backed up by some news. However, IFCI in the last three-four months has been moving between Rs 33 to Rs 37. On the back of this the way the open interest has added up 16 percent, fresh long positions have been added up. The stock has closed well above Rs 37 mark. I feel that, if it consolidates or even for the next two days manages to hold above Rs 37 then it should move up towards the previous range. That is between Rs 37 to Rs 42 now. Traders should maintain a stop loss of Rs 36.50. I am expecting a target in IFCI back towards Rs 42 mark. It is a good long position for me.
Q: Anything from the oil and gas space where you have seen long positions getting built up and would expect more follow through today?
A: Among the oil and gas space there is a very big mixed bag. Among the midcaps, Petronet LNG and Indian Oil Corporation (IOC) have seen the maximum built up on the long side. Petronet LNG looks strong. It can go above and retest Rs 172 to Rs 173. The largecaps like, ONGC, Cairn and Reliance, have seen short covering. One has to be slightly careful in these counters. However, among the midcaps, IOC and Petronet will follow up the way the long positions have been added up.
Q: What do you think- it will be a slow moving market or do you think the Nifty will exhibit momentum this week?
A: Yes, there might be another two-three days of consolidation. We should not forget that we have crossed 6,000. Now we are trying to consolidate above it. That means another two sessions and within latter half of the week I do expect a momentum catching up towards 6,100 mark. Maximum, in next two-three sessions I do see some consolidation happening and then the run up may start again.
Q: What about some of these high beta names. How do you expect them to move the likes of Reliance Infra, DLF?
A: I feel they are taking just a breather. The way the data is shaping up, one could have seen some profit booking coming in. However, these stocks whether on technical or derivative basis, have seen a lot of open interest being added up. Some of the weaker hands will obviously book profit. The bigger chunk is not booking profit, instead they are keeping their positions intact. They have not even reacted two-three percent after showing such a run up. Slight profit taking will come in but these should be utilised as dips to buy in. If the Nifty momentum is being maintained as expected then high beta will continue to outperform in this market.