Here is a verbatim transcript of the exclusive interview with Mitesh Thacker on CNBC-TV18. Also watch the accompanying video.

Q: What is your view on Suzlon and Reliance Communications––both down 30% in seven days?

A: Both are extremely oversold. This is the first time that we are seeing oversold, which we did not even see on price charts when the October 2008 fall happened, so likely to bounce back. In fact we are seeing renew of around 2.5 on relative strength index (RSI) and the indicator cannot go below zero, so it’s extremely oversold. However, I would not bet on any uptrend starting. After this kind of fall what you can get is some kind of short covering. Yesterday we saw the open interest going down in Suzlon, so probably the market also realises that the stock is ready for some kind of a bounce back. Rs 65 to 70 a share would be a good range to get out of the stock and then it will go into a slowly declining mode.

Q: How much of a rebound are you expecting in terms of a target for the Nifty and at what point as a trader would you consider opening a short again because that’s the trade, which has worked in the last few days, shorting the recoveries?

A: It’s very difficult. That’s one question which everybody would like to know as what is the level of exit on the upside. However, looking at the charts and the fall in the last few days, few important price points on the upside, one would be around 4,700 that is where the short-term average is on the hourly and two hourly charts are placed. I think 4,700 looks likely over one-two days if the global markets can sustain for till tomorrow evening. Once that is crossed probably you can look for a slightly bigger bounce back to levels at around 4,840. But we are not betting on markets staying above 4,800 levels for long and even if we get a bounce back slightly larger than what we expect because the undertone has definitely turned on the negative side. So anything above 4,750–4,800 could be used to exit in case there are any longs left in the system and take some kind of bearish positions on the market. 

Q: Would you buy any of the Indiabulls’ stocks now?

A: Not really, in fact while high beta is a good strategy to hold in, in the market, which is a bull market or at least in a short to medium-term uptrend. This volatility will go up in this kind of market and high beta may not serve your purpose well. What you can do is cut down on your overall exposure or quality of trade and then look for trading with a smaller stop loss and make multiple amount of trades, so that will be good strategy. Trade anything which is largecap and which is close to its big support levels, weekly or monthly support level.