 Expect Nifty to cross 5200, gains capped at 5310: MF GlobalPublished on Thu, Dec 24, 2009 at 10:57 | Source : CNBC-TV18 Updated at Thu, Dec 24, 2009 at 13:26 78673 Investors following NTPC. Share this News with them.
Here is a verbatim transcript of the exclusive interview with Vineet Bhatnagar on CNBC-TV18. Also watch the accompanying video. Q: What is your sense of how we would step into January series? A: I think the expiration for December cycle could pretty much be where it is right now. We are seeing a very tight and rangebound activity in terms of the open interest build-up. There was an enormous amount of activity in terms of a short covering that we saw in the 5,000-5,100 Calls yesterday. The open interest distribution that we see is actually limited between 5,000 and 5,200 strikes for Nifty. If you look at the charts there is a support that is coming in quite strongly at 4,980. A bit ahead of it is another one coming in at 5,110. As far as considerable resistance is concerned, it comes in 5,180. There is a chance that it could actually go past it to about 5,200. But the one that we are really watching out for is 5,310, which we think should not be broken. Q: There was a huge burst of buying on the futures yesterday. Is it your sense that there is more by way of short covering cushion or do you think that pretty much got cleaned out yesterday? A: It got cleaned out quite considerably yesterday. On the open interest side, we did not see any activity in the index futures. But for the month of December till yesterday, there has been a selling form FIIs to the extent of about Rs 2000 crore, as far as the Nifty futures are concerned. So that is how the activity looks for this particular cycle. One another thing that we have been witnessing is the very low implied volatility (IVs) as far as Nifty is concerned. It has been trading to a very low number of about 15-16 as a reading. So that perhaps gives the reason as to why there could be a very tepid kind of movement for the next week on the way to expiry. Q: Metals have been in a sweet spot and many of those stocks have reached 52 week highs as well. Do you like that sector in particular? A: Not really. There is an overall pessimism as far as the commodities and metals in particular are concerned. There are very few small to midcap firms that we may spot perhaps only on the basis of technical charts like Bhushan Steel . It is something that has come up on the radar on back of price pattern that we have seen, which gives an indication that it may move up to something like Rs 1,460, if a stop of Rs 1,345 is not broken.
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In an interview with CNBC-TV18, Vineet Bhatnagar, Managing Director of MF Global, spoke about his reading of the market and his outlook.
