Don't see Nifty crossing 4870 easily, says SBI Cap Sec

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Jet Airways BSE | NSE 30/05/12 Are Mutual Funds betting on Jet Airways? Other Stocks in this news Havells India | Madras Cements | Thermax |

Jitender Kumar, chartered market technician (CMT) of SBI Cap Securities indicated that above 4,640 levels, the Nifty has a very good support at 4,670 and 4,700 levels. Moreover, he feels 4,700-4,800 levels will offer good support on the Nifty.

For the Nifty, 5,000 levels becomes a psychological resistance, but according to Kumar, the market's first resistance is at 4,900 levels, where maximum call writing is taking place.

He has a bullish stance on many stocks like Jet Airways , Havells India and Madras Cements .

Here is the edited transcript of his interview. Also watch the accompanying video.

Q: Where are the puts and calls congregating? Where is the market looking for support at this point in time? Where is it guessing resistance?

A: The Nifty has a particular resistance at a psychological point of 5,000 levels. But, the first resistance that the market will need is at 4,900 levels, where the maximum call writing is taking place.

On the put side, there is a very good support at 4,600-4,700 levels, where maximum numbers of calls are getting written. This rally can continue for next two-three days and can hit 2-3% more.

I am particularly looking at 4,870 and 4,940 and 4970 levels. Above that, 5,030 and 5,050 levels continue to be one of the good resistances. I don't feel they will be crossed very easily.

Q: On the downside, what's the expectation? Where are we likely to find significant support?

A: The market has made a quite short-term bottom for the next 10-15 trading days at 4,640 levels, the lows hit on Thursday and Wednesday. Above that, a very good support is at 4,670 and 4,700 levels. Even 4,800 level, where the market open today, will be a very good support going forward. Put-wise, 4,700-4,800 levels will offer good support on the Nifty.

Q: Are any individual stocks offering you some money making opportunities in the options market? Do you have any strategy for Jet Airways?

A: I am very bullish on Jet Airways. This stock has shown a very good rising volume and volumes are increasing with every price rise, which is very bullish for any particular stock. This stock can move up to likely Rs 320-310 levels, which is a very good resistance and profit booking for the stock.

Q: Havells has outperformed the indices in recent times. What's the call on that?

A: Havells story has made a higher bottom and has a rising relative strength versus Nifty, which is very bullish for any particular stock. This stock has resistance at Rs 440 levels and Rs 430 levels, which will be at a good resistance in profit booking levels.

Q: There are newspaper articles that the 4,000 strike has become very active, is that so?

A: Yes. On Friday, we saw very good put buying taking place in 4,000 strike. This is more because of year-end hedging, which particular hedge funds want to product their profits. I don't feel any particular significance that market can go to 4,000 can get us to those particular trades.

Q: Are there any other midcap ideas where you see the calls or puts arranged that you expect a bullish trend?

A: One particular stock is Madras Cement, where I am very bullish on this stock in technicals. This stock is very crucial support at Rs 100 level and can go up to Rs 120 levels. This stock is at sub-taking support at 50 SMA. Upside can be booked at Rs 120 levels.

Q: Do you have any shorting candidates?

A: In the next two-three days, we will have many good shorting candidates. One of them is Thermax , which has a very good resistance at Rs 480 levels. The stock is trading below 50 SMA.

Disclosure: I don't have any position in any of these stocks.