Maintain positive bias on Nifty: Aditya Birla Money

Below is a verbatim transcript:

Q: How are you mapping the last few days and what kind of an expiry do you see for the January series?

A: Expiry will be slightly with a positive bias. Becuase of the way the Put writers have accumulated themselves now on 6,000 and on Friday, there was some built up on 6,100, I am expecting the expiry to be on a higher side i.e. towards higher side of the band 6,130. So, I still maintain a positive bias on Nifty .

However, we have got a very big event on hands tomorrow that can decide the fate. But till now the data points are reflecting that the bias is completely positive.

Having said that, I am slightly worried about the mid-cap stocks. From last three-four days, we did see some short covering coming in, but the confidence of mid-caps seems to be going down. Clearly, tomorrow's event is very important because the large-caps cannot continue to move up unless and until mid-caps also catch up. However, the bias is positive because the large-caps are still holding very strong.

Q: Any big position build up you saw on the Bank Nifty ahead of tomorrow's policy and how are you trading that?

A: In the public sector undertakings (PSU) banks, on every fall of 5-10 percent we are seeing the buying coming back.

Stocks like Bank of Baroda (BoB) and Bank of India (BoI) both saw fresh longs on Friday from lower levels coming back in and the leader itself is leading the rally. So, I am still positive specifically on State Bank of India (SBI) and BoB.