Q: There is a lot of talk about how 4,800-5,000 will be difficult to cross this time around. What do you think?

A: According to me, we are going to see the market that go up strongly in this cycle. This cycle that started presumably say before and then we might see a market that falls below 4,500. It’s a volatile market, which is going to make a very large trading range. So I would not be surprised if 5,000 take’s out on the upside. That doesn’t mean we will keep on seeing higher levels. This market is going to be difficult or it will certainly surprise on both sides.     

Q: What about the two financial stocks IFCI and IDBI?

A: I recommend not to touch IFCI. I am not a fan of that stock. It hurts investors and traders every time you touch it. IDBI remains a buying opportunity for the short-term traders as well as for a person who wants to make an investment. So that’s a stock you buy on every dip. 

Q: What about the two of the high beta names Punj Lloyd and Reliance Capital, which have shown some signs of bouncing back?

A: Yes but Reliance has nothing. I would assume that at the first signs of weakness it’s going to collapse for the second time. Punj Lloyd has come back to Rs 180 roughly Rs 186. Hence, it clearly found some significant chart support there. My sense would be that it’s worth trading Punj Lloyd now on the long side rather than to look for more weakness.

Q: A chart check on Gas Authority of India Limited (GAIL) if you have seen it?

A: I have not checked GAIL recently but I must say that selling in a rising market has its own disadvantages and risks.

Q: It’s more than 4,800 open today. What would be a reasonable intraday target to set on the Nifty?

A: We will reach 4,850 soon. I don’t think this market will slide today and go down. So at some point during the day, 4,850 should be touched.  

Q: What about some of these smaller banks like Allahabad Bank, Syndicate Bank, Yes Bank any thing looks interesting to you?

A: I think banks will continue to under perform for the next few weeks at least even if the market goes up. So if at all we want to focus, we should focus on public sector undertaking (PSU) banks like Punjab National Bank (PNB), Bank of Baroda, Uco Bank and State Bank of India. I would prefer these to the small or private ones.      

Q: Did you have a look at some of the IT charts Polaris, Rolta?

A: I am afraid of buying them now. They have run up in the last two days including but the stocks are only meant for momentum traders, I don’t think an investor should even be looking at them unless a deep and significant correction comes. Momentum traders should look at that only on dips.