Hold long positions in Nifty above 6165: Aditya Birla

In an interview to CNBC-TV18, Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money Ltd spoke about current trend in F&O market.

Below is a verbatim transcript of the interview: Q: You would still stay with your longs on the Nifty this week? A: Yes. I do not see any pattern changing currently on Nifty. The way the Put writers are catching up to cover their Call positions sold, 6,200 Call was sold highest, now we have even seen a starting edition in 6,200 Puts. Clearly, it is more of a Call sold. People are trying to shift at every 100 levels and they are getting caught. So, I think people who want to go long or who are already long should keep a stop loss of 6,165 with targets of 6,250-6,270. I think some resistance can come in this 20 points range. However, 6,165 is a level which I am watching carefully. If it has not broken, I think one should continue to hold longs. Q: You have a strategy on Bharat Heavy Electricals Ltd (BHEL) today? A: Yes. All the capital goods stocks had seen some buying coming in. Importantly, Siemens saw more of short covering coming in. It was more of this Voltas, BHEL which added open interest (OI) on the long side especially BHEL because it has broken through that channel. It was having a lot of resistance around that Rs 198-200 zone. Now it has broken above that zone. If it sustains above Rs 198-200 today, it should move up to Rs 212-215. It has that power, which can be seen by the long OI built up but traders have to keep a stop loss. I would keep a stop loss of Rs 194 with a target price of Rs 212-215 on the upside. Q: You are also playing Unitech this morning, what is the strategy there? A: Midcap real estate is one more sector or one more side of the market, which has seen a lot of long OI being built up. Very clearly, because the market is showing a lot of momentum, so a lot of high beta spaces have started participating now. Unitech is one of them. It has seen 14 percent OI being built up. For me, more importantly, it has managed to close above that Rs 30 mark, which was acting as a very stiff resistance for it. So, this rally or momentum will continue in Unitech and we may retest Rs 32.50-33 on the upside. Yet it is a high beta counter, so traders should keep a tight stop loss around that Rs 28.50-29 mark, which should be a strong support for Unitech.