Nifty may drift to 5823-5838 for Dec settlement: HDFC Sec

The December series is about to end and the market is likely to be governed by domestic as well as international cues, believes VK Sharma of HDFC Securities. According to him, the winter session of parliament has been quite productive and it has successfully laid the foundation for the market to go ahead. Therefore, the market is not hurrying to breach 5965 during the December series, he opined.

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Sharma feels, the Nifty might drift slightly slower for the settlement and move in the range of 5823 to 5838. "The market is not in a hurry to go above the level of 5,965, which is the high that they have made. My sense is we will not break this on the higher side for this settlement and probably we will drift slightly lower, somewhere in the region of 5,823 or 5,838," he explained.
As far as the metals pack is concerned, Sharma believes stocks like Tata Steel, Sterlite Industries, Jindal Steel & Power, JSW Steel may be good bets. Here is the edited transcript of the interview on CNBC-TV18. Q: What is your sense of what lies ahead in the last few days of the December series?
A: I think we are going to be governed by what is happening domestically and internationally. Our own Parliamentary sessions have ended and therefore, usually there used to be a sense of relief but this has been a session with a lot of difference in which a lot of work has been done. For United Progressive Alliance (UPA) II, this is one of the most productive week that we have seen.
The groundwork has been laid and therefore, the market is not in a hurry to go above the level of 5,965, which is the high that they have made. My sense is we will not break this on the higher side for this settlement and probably we will drift slightly lower, somewhere in the region of 5,823 or 5,838. Any resurgence will have to be in the next series, which can happen after December 27. We would like to lighten our commitments going into January but, still we will not go short in terms of the market. Q: Anything in metals that leaps out in the Futures segment?
A: I think among the metals as a class, if you were to pick out one segment, then they must have done well and have fared despite all the talk about slowdown in the industry and the Chinese fears. All the stocks have done well but, I feel reluctant to buy positions or build positions there at this point of time merely because we expect the market to fall further today.
But, we did see positions being build in Tata Steel, the stock went up and also positions were build in Sterlite Industries and so was the fact in Jindal Steel & Power and JSW Steel. These are the stocks which can be bought through Option route or maybe if you want to pick one stock and if Tata Steel gives 2 to 3 percent downtick, then you can buy the Call at that point of time.