Nifty still stuck in 5950- 6130 range: Aditya Birla Money

In an interview with CNBC-TV18, Hemant Thukral of Aditya Birla Money, spoke about his reading of the market and his outlook.

Below is a verbatim transcript: Q: How are you approaching the Nifty after that sub-6,000 close on Friday? A: I still feel that Nifty has not broken any side of the range. It has not broken below 5,950 neither had it crossed 6,130 on the upside. On Friday, we got 10 lakh shares more added on 6,000 Puts, which clearly defines that the Put writers are not taking it in stride or not expecting that Nifty will break the lower side of the range of 5,950. I feel this level will act as a very strong support on the downside. 5,950 in cash or 5,980 in Futures, this is the last time low that we touched. I am still of this opinion that if you are holding long, the final stop loss would be 5,950 in cash. However, if you are a risk trader, this is the right level to buy into Nifty and then wait to see whether it can retest the higher side of the range. That would be again 6,100-6,130 on the upside. Q: You like Punj Lloyd from a trading perspective? A: Yes. In fact, on Friday two infrastructure stocks not only saw very good aggressive rollovers but also have seen follow-up buying, one is GMR Infrastructure and second is Punj Lloyd. Both these mid-caps have attracted fresh long positions as they have entered February series. We prefer Punj Lloyd because Punj Lloyd has seen a higher open interest (OI) being added up at a higher cost. So 7 percent positions have been added up and the cost has moved up. Clearly long positions have bee added here. Crucially on technical front also, Punj Lloyd has managed now to sustain well above that Rs 53-54 mark, which was acting as a slighter resistance point for it. So, an immediate short-term trading call -- I feel it can retest Rs 57-58 levels on the upside. Yes, it is a high beta counter so stop loss has to be maintained. So we will be keeping a stop loss on Rs 52 for Punj Lloyd. Q: The space that has been looking pretty sharp is the real estate space, anything stands out in your market from realty? A: I feel that trading interest is maintained in real estate. We saw some profit booking coming back in DLF because DLF had shown a sharp run up that is why we have seen unwinding of positions. So, there are no fresh shorts being built up. Indiabulls Real Estate saw some fresh longs being built up. HDIL has started seeing some buying coming back around that Rs 65-67 mark, which has been a multi-year lows for HDIL. I still feel that trading interest is being maintained and once DLF corrects to Rs 255-256 levels, -- i.e. another 3-4 percent from here -- it again becomes a very good buy. So, for me, DLF and Indiabulls Real Estate both are still good trading picks from hereon. Q: You have got a strategy on Yes Bank as well? A: Yes. Private banks have been suggesting strength post rollovers. We have seen that especially the mid-cap private sector banks like Indusind Bank and Yes Bank have added fresh OI in the last trading session. Especially on Yes Bank, 12 percent positions have been added with a higher premium. It clearly suggests that the trading or buying interest is coming back in this counter. The stock has yet again closed above Rs 530 so it is holding Rs 520-525 as a crucial support now. An immediate target seems to be Rs 545-550 zone. So, I would be going long keeping a stop loss of Rs 520 on Yes Bank.