Strong resistance for Nifty at 4210: India Infoline

Q: What about the chart of Suzlon now?

A: Suzlon at about Rs 90 has got resistance at about Rs 92-95. It has been a highly volatile stock depending on the news factor which has been playing in. I just say that if you have it you can hold it with a stoploss of Rs 87 but I would not really go and buy it at this time because though all the high betas are into a recovery mode, this recovery can be so swiftly in and so swiftly out that even if you want to play as a trading bet it would play a safer stock than that.

Q: You were saying that you don't believe there is too much upside? Would you consider shorts or just look at unwinding longs on the up move if your view is circumspect?  

A: It would be unwinding longs and then waiting for an opportunity to go short. It is not a presumptuous short, it wouldn't make a right kind of a strategy. So definitely unwinding some of the long positions built over day before yesterday and yesterday could probably be unwound at higher levels.

Q: Where from here? We have got the morning pop to 4,150, give us some scenarios and how you expect the next few days to pan-out?

A: As we were talking earlier, 4,210 and 4,350 are the two levels that people would watch out for. If 4,210 is kind of taken out then probably we might see another round of short covering like the one you saw yesterday when 4,090 was crossed. Given those levels, I would still say as I said before that it is still not hunky dory for another 10-12 days. I still see a lot of it is also because of global clues, there was a head and shoulder negative formation in the US for which people had gone short and once that got violated when the S&P closed around 900. People also went on a covering rampage yesterday, but I think we need to watch for the global cues also for the next one week and we have to watch our own strength. So I would say we would really be only strong after we scale-up 4,355 but having scaled to 4,090, I would say the weakness which was persistent over the last one week to an extent has got mitigated. We were extremely oversold so we could be rangebound; we may not fall sharply and we may not gain sharply. Individual stock moves would probably be the call of the day and I think it is probably going to be choppy for another week to ten days though it has to be a wait and watch.