May 16, 2013, 10.03 AM IST
Market is getting overbought, one has to be slightly cautious. Hemant Thukral of Aditya Birla Money suggests to maintain trailing stop loss and continue to go long on Nifty.
In an interview to CNBC-TV18, Hemant Thukral of Aditya Birla Money shared outlook on the F&O market.
Below is a verbatim transcript of the interview:
Q: Big blowout in the market yesterday, what kind of levels are Nifty traders talking about now?
A: I was suggesting beforehand that the fall two days back took people by surprise and people were forced to unwind their long positions because the way it came off below 6,000, a lot of people started thinking of lower levels and now again the bull run has started on the upside .
For me till now there has been no shorting from foreign institutional investors (FIIs). They have been continuously long on Nifty futures. So I do not see any reason to go short till now. Yes, the market is getting overbought, you have to be slightly cautious. I will maintain my trailing stop loss and continue to go long.
Even if you have not gone long on Nifty today, there is more room on the upside. Immediate target would be around 6,200 and then 6,250. However, people who are going long today should keep a tight stop loss around 6,080. Till it does not break the previous low, I do not think there is any reason to go short.
If I have to go short on this market, I would be watching only below 6,050.
Q: Give us a quick trading strategy on Dena Bank , that is one of your picks today?
A: Yes, yesterday we have seen the public sector undertaking (PSU) banks especially the midcap PSU banks adding open interest (OI) and seen delivery based as well as cash volumes increasing. Dena Bank is one of the slightly underperforming banks that is why I have picked it up.
Importantly, yesterday it added up 5 percent OI on the long side and also it has managed technically to close above that Rs 92-93 zone, which was acting as a resistance point for it. In immediate short-term, I expect Dena Bank to retest Rs 101-102 where 200 days moving average (DMA) of Dena Bank lies. If anybody is going long today on the recommendations should keep a tight stop loss of Rs 90 on the downside, which is a very strong support zone for Dena Bank now.
Nifty decline continues but comes near 6220 support. A relief rally is possible. Short term trend may turn sideways
A sharp decline in the Nifty today, brought the index very close to a support zone from 6200 to 6220. We may find the Market holding on to support, at least for a short period of time.
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