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Sep 07, 2012, 01.06 PM IST
VK Sharma of HDFC Securities says 5,330 is in the realm of possibilities. "There is an upwards chance of that breaking," he adds.
Q: What kind of shorts do you see in the market right now? Do you think there were heavy short positions that need to be covered, after today’s gap up?
A: Usually people would not go out and buy on a day, when the Dow has given 200 plus positive returns. But there are huge shorts still in the banking space. Although the Bank Nifty has gone down by 2% in the current series, there is almost 12% rise in the open interest. This is largely on the shorter side.
The short covering in the banking space can result into the Nifty going up. Within the banking space, I have told about SBI. But even if somebody buys the 10,200 Call in the Bank Nifty, that might be a good idea.
Q: Because of the move that we are seeing in global metals, there is a move in metal stocks as well. You have a strategy on Hindalco. Can you tell us about how you would approach that?
A: You can look at Hindalco from two angles. One is there was a slight addition on the longer side. Stock went up, increase in open interest. There is a positive divergence on the technical charts as well. So, I am suggesting buying the 110 Call, which was available at Rs 1.40. That can be held on for the current series. There is a good distinct possibility that this Re 1 gamble on Hindalco could pay you off to the extent of two-four times of premium that you pay.
May 24 2013, 16:42
- in Rupee
May 23 2013, 09:33
- in Technicals