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Jul 17, 2012, 12.37 PM IST
Anu Jain, IIFL Private Wealth Management says, if the Nifty breaks 5,170, it will grind down to 5,050 pretty soon. "I feel that probably buying on dips strategy may work out. If we were to break 5,170 then closer to 5,100-5,070 would be areas where one should accumulate," she adds.
The Nifty has been subdued over the last few sessions. In an interview to CNBC-TV18, Anu Jain, IIFL Private Wealth Management says, if the Nifty breaks 5,170, it will grind down to 5,050 pretty soon.
According to her, buying on dips strategy may work out. "If we were to break 5,170 then closer to 5,100-5,070 would be areas where one should accumulate," she adds.
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Below is the edited transcript of her interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee.
Q: How are you feeling about the market? Which way do you think it is trending, towards more rangebound trade or on the upside?
A: We are grinding. I was expecting some support around 5,170. We closed pretty close to it. Today, there could be a mild bounce. Till 5,260-5,270 doesn’t hold on a closing basis, I wouldn’t say that we are showing resilience because it is just lack of selling.
If we break 5,170, you will grind down to 5,050 pretty soon. So, the market can go either way. Some of the sectors are showing a lot of promise, so probably they can be looked into as an individual stock call.
As a Nifty call, I feel that buying on dips strategy may work out. If we were to break 5,170 then closer to 5,100-5,070 would be areas where one should accumulate.
Q: Technically, what are you reading into the CNX-IT right now and the chart of TCS particularly?
A: If you look at the IT index, it is indicating a sell. But if you look how the way market was closing yesterday, I think probably you could see a short-term bounce coming into the counter. So, TCS has got support at about Rs 1,185. If it can manage to hold on to Rs 1,227, you will see some kind of short covering coming into the counter.
Same is with Infosys. So, on the intraday charts, towards the closing there was a buy signal on Infosys that it could probably pullback a bit to about Rs 2,240-2,280. So, where it closed at Rs 2,170, it just breached the Rs 2,180 levels, which was the major support. So, there was some kind of fresh shorting on to the counter. But I think it is more poised right now for atleast an intermediate pullback, even if there is no strong build up beyond Rs 2,240. But I think probably today or tomorrow you could see a pullback into the CNX-IT. I think about 2-2.5%, which it gave up yesterday, the IT index could catch up on that again.
Q: Pharmaceuticals did quite well in a slippery market yesterday, you have picked Torrent from that list.
A: Infact quite a few of them are giving a very good signals including Lupin , which is looking good for about Rs 620 around. Torrent has moved already from those Rs 620 levels to closer to Rs 650. So, I would say that if there is any dip, if the other part of the market starts moving, these may go into a slight consolidation phase. So, any dip upto around Rs 630-632 seems to be good because it broke out above Rs 630 level and now that is acting as a support.
I would look to buy around the Rs 635 odd levels. It is looking poised on the week to two weeks about Rs 690. Even as an investment call, I think this is looking good for about Rs 770 over a slightly longish period of time. So, there is some mild resistance at Rs 655, momentum will be build beyond Rs 655 levels. So, dips should be used to get into the counter.
May 25 2013, 16:36
- in Technicals
May 25 2013, 16:36
- in MARKET OUTLOOK