Nifty won't cross 5850 now; buy on dips: Hemant Thukral

Hemant Thukral of Aditya Birla Money does not expect Nifty to breach 5,850 levels in a hurry. The market might consolidate between 5,690 and 5,840 levels, he said in an interview to CNBC-TV18.

The Nifty opened 22 points down to 5,724.95 today on the back of weakness in Asian markets. "For immediate short-term 5840-5850 is the resistance. Till we cross that, I don’t think we can go up to 6,000. On the downside, major support remains between 5,650 and 5,690," he added. He suggests buying on dips. Below is the edited transcript of Thukral's interview with CNBC-TV18. Q: What do you expect the Nifty to do in the remainder of the October series now? A: The way Call writers have positioned themselves, especially on Friday, the way positions were forced at 5,800 levels, it seems that for immediate short-term 5840-5850 is the real resistance area for us. Till we cross that, I don’t think we can go up to 6,000. On the downside, major support remains between 5,650 and 5,690. You have to buy on dips and you cannot buy aggressively long because if 5,850 is the resistance, at current levels the risk reward is not in your favour. I would advice that one should buy at every dip, but, the cash level support has to be maintained as stop loss is 5,690. Till that level holds, we have very fair chance to go back upto 5850. But I really don’t see Nifty crossing 5,850 in a hurry. For at least 7-8 trading sessions, between 5,690 and 5,840 some consolidation is on cards. Q: You have couple of buy ideas; can you about your buy on Shriram Transport? A: It is getting more stock specific now. If one sees all the financial counters, Shriram Transport Finance has not moved at all. On Friday, it saw a surprise rally along with 26 percent fresh open interest being added up. The stock has climbed up and another 7-8 percent move from here on is very much possible. The way cost has moved up, it suggest that this 26 percent has been added on the long side. I will be a buyer in Shriram Transport Finance with a target of 7-8 percent in the next 5-6 trading sessions. Q: You have got a trading buy on Dabur today? A: Defensives have started attracting buying again. With Hindustan Lever moving up very sharply and ITC in a tight range, on Friday, we saw that trading interest has started coming in Dabur. Nearly, 32 percent open interest has been added up. Not only that, Dabur has convincingly closed above Rs 130 with good cash volumes. If Dabur continues to hold above Rs 127-128 , which has to be maintained as a stop loss, I see Dabur going up; the immediate target is Rs 140 and then Rs 145. In the next 3-4 trading sessions, traders can make good money on Dabur. Q: What kind of positioning you have seen in terms of longs or shorts going into this week in HDFC and Bharti Airtel? A: On Friday we saw lot of shorts being pushed in, in HDFC Limited. One reason is the deal that happened and secondly, the stock came below its crucial support of Rs 750. If it doesn’t cross Rs 755 today, then it can revisit Rs 710-715- its strong support. So, we have seen aggressive shorts in HDFC. On the other hand, Bharti Airtel has seen no trading positions. Week on week, the open Interest which has got added is just 1 percent, but the other telecom stocks like RComm have seen fresh shorts being build up. For Bharti, I don’t see many aggressive trading positions being built up, but RComm has seen shorts.