Next stop, 5350 if we cross 5205: IIFL's Anu Jain

She indicated that the illusive resistance for Nifty continues to be at 5,205 levels. However, she expects the Nifty to cross that level. "If we cross this, 5,340-5,350 levels would become the next logical move," she added.

Moreover, she pointed out that the construction and engineering sector would pickup if the market goes to about 5,200 levels and consolidates.

Here is the edited transcript of her interview. Also watch the accompanying video.

Q: How does the week look for the index?

A: The major stocks like Reliance , HDFC Bank  and State Bank of India are positively bias. There are a lot of events lined up this week from expiry to results to RBI policy review to the European policy announcement.

The bias is getting positive. On the Nifty, 5,205 levels continue to be the illusive resistance. On the news and technical front, we can cross this range now. If we cross this, 5,340-5,350 levels would become the next logical move.

Q: What is your view on L&T ? How does it look in the context of what you described for the Nifty?

A: Post results on Friday; Larsen saw an up move first flowed by a down move. For this stock, 1,300 levels should hold. One should go short only if 1,300 levels were to give out. If 1,300 levels give out, then 1,220-1,225 levels would be the next logical target.

There is a good possibility of all the build-up and probably 1,300 levels would hold. The only concern would arise if 1,300 levels gave up. The entire sector has been underperforming.

Other stocks like BHEL and Voltas is oversold. If the market goes to about 5,200 and consolidates, we may see a pickup into this sector again as everyone would find it relatively cheaper.

Q: In the context of this breakout talk, how do some of these largecap charts like Bharti Airtel and Tata Motors stack up?

A: Bharti Airtel has not been performing for quite sometime. It nearly gave a breakdown and jumped back. At Rs 378, if the market pulls up and a lot of shorts which have not got cut, they can take it up to Rs 390-395. Crossing that level would be difficult.

The whole auto pack has been moving. It has moved smartly from the bottom that it made. It has moved nearly 45% odd from there, so taking a rest after that is definitely in. Tata Motors gets support around 178 levels. It can move down to 174 levels. It would have to stay at 178 levels and stay over 180-182 levels to show fresh momentum.

As of now, it could very well be in a band for some more time because the other auto stocks like Hero Motocorp and TVS are looking better. The stock is in a consolidation phase after having done a very sharp move up.

Q: It will be a big week for the Bank Nifty. How would you trade that?

A: It looks interestingly poised because it has closed about 9,695 levels. It looks poised for 9,900 levels, where resistance is. If you look at the major chart formations on the major banks like State Bank of India and HDFC Bank, they look promising.

Given the fact that there is a talk of recapitalisation in SBI, it looks poised for at least 2,020-2,030. Between 2,020 to 2,100 levels, there are a series of resistance. We need to watch out for which resistance it catches and jumps back, and consolidates at 1,920-1,930 levels.

Post HDFC Bank result, it looked that some profit taking was coming. If it manages to stay at 487-488 levels, it’s definitely poised towards 510 levels, which is a two month high that it has made. It looks promising as well.

Axis Bank would react today to the results that it showed on Saturday. The bias is always at post results generally Axis runs. If we look at the charts, it appears a fair buy at 1,127 levels. It will definitely attempt to reach 1,160 levels.

The only weak pack, which is a definite weightage on the Bank Nifty is ICICI Bank . It is not oversold, but has not performed at the same time. Towards expiry, there could be a bounce on that as well.

Q: The big performer from the midcap has been Moser Baer , up 24%. What is your view on that?

A: I don’t track them, but I have a chart check right now. The whole sector did well, so along with that Moser Baer also performed. If the stock holds on to 27 levels, there is a possibility of a sharp up move again.

The support is at about 25.60 levels and has broken out of averages, but there is resistance around 28-29 levels. If it manages to hold on to current levels, it will attempt 29 levels. If it holds those, then 31 levels are possible. I would suggest a stop loss of 27 levels.

Q: What do the charts say on some of the auto stocks like Maruti and Hero Motor, which were losers last week?

A: Hero looks good at 2,052 levels. If it holds on to 2,000 levels, there is support at 2,020 levels. It looks good for 2,200 levels. Even if it is not doing fabulous, it looks good.

Maruti has had a news-based pullback. It closed at 1,094 levels. Around 1,070-1,067 levels seem to be a very good support area and look poised for 1,140 levels. One should look at 1,140 levels as a suitable target.

Q: What is the Crompton Greaves ' chart telling you?

A: I would stay away from this stock. Every time it tries to recover, it moves off. I would still play BHEL . It looks like this stock has a possibility of another 5-8% breakdown even if the market were to stay sideward. It is best left alone, till it gives a signal to sell further, but at the moment, I would stay off it.