Strong resistance for Nifty at 5,350: HDFC Securities

VK Sharma of HDFC Securities, says that the rally that we saw yesterday on the Nifty can be largely attributed to Reliance. So 5,350 is a good resistance for the Nifty, and crossing that level would be a herculean task.

Below is the edited transcript of his interview to CNBC-TV18. Q: If you had long bias going on the Nifty would you continue to hold that this morning?
A: The rally that we saw yesterday on the Nifty can be largely attributed to Reliance. So 5,350 is a good resistance for the Nifty, and crossing that level would be a herculean task.
I am comfortable instead of selling 5,200 put, which is available at 43. If the market goes up, than I can make Rs 30 even if we close our trade before the expiry happens. I will be more bullish and will take at buying call after 5,350 levels. Q: Do you think Reliance is good for more?
A: In the current settlement Reliance can touch Rs 820-850. However, after yesterday's 6% rise some people would rather play it safe and keep a reserved attitude. One can sell 760 put at Rs 7.5. With the margin of Rs 60,000 it calculates a return of 6.5% for the settlement. One planning to buy Reliance will be better-off at 760 a put .