In an interview to CNBC-TV18, Hemant Thukral of Aditya Birla Money shared his reading and outlook on Futures and Options market and specific stocks.
Below is the verbatim transcript of an interview aired on CNBC-TV18.
Q: Yesterday the market held out on the back of Bharti Airtel, do you see more upside here?
A: Telecom was a complete under owned sector, the way it was outperforming. Now suddenly fresh open interest build-up is seen at such higher levels. Yesterday Bharti Airtel added up 11 percent in open interest. After crossing Rs 340, the way the Call writers had to cover their position yesterday and fresh Put writing was seen on Rs 360 levels coming in. It is suggesting that some more run on the upside is visible. I am expecting another 7-8 percent move from here in Bharti, which can take it to at least Rs 390-395 levels, any trader who is taking position today has to keep a stop loss and stop loss should be last four days’ bottom that is around Rs 350-355 mark where Bharti was consolidating post breaking out of Rs 340. I still feel telecom sector overall will see buying with Bharti outperforming that bit.
Q: You are buying Bharti Airtel today?
A: As I suggested the way the open interest has been added up in Bharti among all the telecom players, seems that it will be outperformer. It crossed Rs 360 yesterday, where major Call writers were caught short and they had to cover their positions. So, in immediate short-term we are looking at a target of Rs 395 with a stop loss, which traders have to maintain around Rs 350-355 mark.
Q: You are going short on Punjab National Bank (PNB)?
A: Bank Nifty has been in a range like Nifty between 12,500 to 12,800-12,850. In the last three-four sessions the public sector undertaking (PSU) banks, which were stretching Bank Nifty have started to lose the momentum. Post Syndicate Bank’s numbers one started seeing shorts being in all the PSU banks whether midcap or the largecap and PNB is one of them which have started seeing short build-up yesterday. The cost has come down that is the premium has come down, which is suggesting that yesterday’s 7 percent open interest being added up is on the short side and the way PNB is not able to cross Rs 898-900 zone where its 20 day and 10 day moving average is placed, it can go back and retest a stronger support base that is the 50 day moving average around Rs 836. I would be going short, keeping a stop loss at Rs 898-900 levels and looking for a target around stronger support zone that is Rs 836-835 in next few trading sessions.
A: The day Hindustan Unilever announced results a lot of short build-up was seen but yesterday at lower levels one starting seeing some open interest decline, which means first sign of short covering started coming around Rs 445-450 mark. Having said that the way the stock has come down under pressure and now fresh Call writings levels at Rs 480-500, I do not expect this stock to rise above Rs 465-470 in a hurry. Therefore, at higher levels one will see pressure but the way the open interest is being build-up, now 27 percent outstanding shorts are still there in the system. I think around Rs 440-450, some signs of supportive buying will be visible.