Metal to show weakness; Nifty to expiry @ 5120: Motilal

We are seeing continuation pressure coming in the metal socks. We expect weakness to continue in the metal space in the next series also.

For Bank Nifty, holding above 10200 is crucial from immediate point of view. If that is broken, then we could test around 19700 which is the 200 day moving average for Bank Nifty.

Below is the edited transcript of his interview to CNBC-TV18.

Q: Is 5100 still being held? How does the contract look like closing?

A: We are expecting the Nifty to expire around 5100 levels based on options open interest. On the downside 5000 open interest is quite a built-up. So we expect 5120 to be the expiry zone.

The market has been trading down for last three-four days except for one day marginal gain of 10-11 points. So some recovery could be expected there and 200 day moving average where the market is trading right now very close to, if that is hold on at least till expiry it seems like to be holding on as of now.

Q: Which stocks would you think that in the next series might be weak with the kind of rollovers that we have seen?

A: We are seeing continuation pressure coming in the metal socks. Multiple support was existing for Jindal Steel and Power at Rs 410 level. Today it’s trading at Rs 400 level, and can go down up to Rs 350 level. So, we expect weakness to continue in the metal space in the next series also.

Q: How will the Bank Nifty close and how it might perform in the next contract?

A: For the Bank Nifty, 10200 which was very close by is a very crucial level because that was the previous high, it was making and breakout on the Bank Nifty led to 10800 or so.

For Bank Nifty, holding above 10200 is crucial from immediate point of view. If that is broken, then we could test around 19700 which is the 200 day moving average for Bank Nifty.