For Nifty, 5060 is a crucial level: Anil Manghnani

As long as the market holds 50% retracement, at 5,060, it still maintains its overall uptrend and the strength that is available in the market. I am still comfortable if the Nifty falls by another 60-65 point fall.

We saw stock like Kotak Bank and IndusInd Bank have corrected after posting numbers. Some of these stocks that have held out for long needs to pullback to make it an attractive buy. For Yes Bank , I expect a level of Rs 330 on the downside.

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

Q: Do you think the level of support that we are negotiating right now ballpark 5,100 will hold out as we end the July series and get into August?

A: We are at the first level of 5,125. I am also comfortable if it slides up to 5,060 which is a crucial level.

As long as the market holds 50% retracement, at 5,060, it still maintains its overall uptrend and the strength that is available in the market. I am still comfortable if the Nifty falls by another 60-65 point fall.

I think there will be bounces if it falls below 5,060, then it will lose its overall strength to rally back and take out 5,300-5,400. We may expect a little more downside but it should not break 5,060 levels, so that the overall strength is maintained.

Q: With Yes Bank results today, do you chose to sell this stock?

A: There are some concerned that after long time the stock is now starting to make lower tops. We saw stock like Kotak Bank and IndusInd Bank have corrected after posting numbers. Some of these stocks that have held out for long needs to pullback to make it an attractive buy. For Yes Bank, I expect a level of Rs 330 on the downside. This is more of a trading call. So I think some of the banks still need to pull down for the overall market to bottom out.

Q: How you would approach HUL today after the big move it saw?

A: It is clearly the most outperforming stock over the last year when you talk about Nifty 50. It will maintain its outperformance more because whenever the market gets jittery, they have been defensive. I still think FMCG will continue to hold for next one or two quarter. Right now, I am working at Rs 480 and Rs 500 levels. 

Profit booking will come in at Rs 500, maybe it will drift back to Rs 440 and then again it will start its upmove. For now, the outperformance will remain and there will be enough interest in the stock. Yesterday the volumes were quite significant also with the price breakout.

Q: What is your view of PTC ?

A: It is just a trade. I think it has done a 50% retracement at the current rally and the pullback. So with a quick Re 1 stop and maybe Rs 3 pullback, so we may have a very short-term trade on it.

Q: How does the dollar-rupee chart looks from here?

A: Volatility has subsided to a certain extent. I think 56.57 is an important support for the rupee. If it takes that out then again we are headed back to the all-time lows of 57.33. But for the time being, it is stuck in a trading range between 54 and 57.

The rupee does not do much as 57.30 is the low for the rupee. But there is some solace as the volatility has subsided. The relationship between the market and the rupee is not on a day-to-day basis. I think that temper down a bit. I think that might continue for sometime unless one start taking out 57.30 again and then the alarm bell will start ringing.