Mar 21, 2012, 12.02 PM IST | Source: CNBC-TV18

Rally intact till Nifty holds 5080: Anil Manghnani

The Indian market has been subdued post the Budget. In an interview to CNBC-TV18, Anil Manghnani of Modern Shares & Stock Brokers says, the market is back in the crucial support zone; 5,210-5,080 remains the major support for the Nifty. "As long as it doesnt break that zone, every time it comes into that zone, its a buying opportunity," he adds.

Anil Manghnani

Analyst, Modern Shares & Stock Brokers

Expertise : Equity - Technical

More about the Expert...

The Indian market has been subdued post the Budget. In an interview to CNBC-TV18, Anil Manghnani of Modern Shares & Stock Brokers says, the market is back in the crucial support zone; 5,210-5,080 remains the major support for the Nifty. As long as it doesnt break that zone, every time it comes into that zone, its a buying opportunity, he adds.

According to him, the overall rally hasnt broken down and wont break till the Nifty goes below 5,080.   

Also read: For market gains, investors should learn from past

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: How you think we will close this series up, is it going to be very flat and sluggish or do you fear there is downside risk?

A: You are out of that major news week we had last week. The market did correct post the Budget, but net on net last week the Nifty only fell 15 points. So you take that at the beginning of the week, given that you had so much activity with the RBI credit policy, the budget, WPI and IIP numbers.

Having said that, I think again we are back in that crucial support zone; 5,210-5,080 remains the major support for the Nifty. As long as it doesnt break that zone every time it comes into that zone, its a buying opportunity. I think the overall trend still remains intact. The overall rally hasnt broken down and wont break till you go below 5,080. So, I am still optimistic. I am still saying every time you get into the range of 5,210-5,080, you again go and buy stocks and you play for a bounce maybe.

As long as 5,080 holds, 5,650 move that everybody is expecting still holds true. But that momentum will pick-up only once you cross 5,400. So, maybe you stuck in a tight range for the time being and maybe you will see out the series in this zone. Then probably you take it next month with a hope that if you hold 5,080, which I am still hopeful for now, you still have a chance to go back up.

Q: Does the lead indicator for the market still remain the Bank Nifty?

A: I will have to say so. The fact that it held the 38% retracement at 9,900 odd and is bounced tells me that its still showing strength. If you look at some of the other sectors like capital goods or even metal, they all went and hit some 61.8% retracement on many stocks. So, it still tells me that the banks are strong. Look at a lot of the PSU banks, which I want to buy on the fall, but they are not still falling. That itself tells me that a lot of buying is still taking place in that sector. So, I will have to say 9,900 remains the key support, maybe in a major fall even 9,500 but still anywhere from 9,900 and lower also is still a buy zone for the Bank Nifty.

Q: In the near-term, would you change your stock strategy? Some of the defensives have started moving again; ITC is up 7% in the last three days, we were talking about stocks like VIP and Bata. Is there more trading juice there now?

A: I will still maintain that high beta is the way to go. Till the market finds its trading bottom, whether it is 5,210 whether it is 5,080 whatever it be, maybe you can make a case for these defensives. But otherwise I am still of the opinion that once the market makes a bottom banks, infra are still names to look for. They are the ones that can potentially take you back to that 5,650. I doubt HUL or ITC can take you there.

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