March expiry could be close to 5300: Vineet Bhatnagar

After a very volatile session, March expiry is drawing close next week. Vineet Bhatnagar, MD, MF Global feels that the expiry could be close to 5300 levels.

Stressing that the market needs to hold 200 daily moving average (DMA), he adds that option activity shows that the market could inch up to 5400-5500. As a strategy, Bhatnagar recommends going long on L&T. Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: The India VIX shot up to almost 25 yesterday. Is it suggesting that this volatility will continue or there is more downside to the market? A: There was an across the board increase in the volatility, ranging between 200 to 400 bps, which was quite significant without a doubt. To our minds, I think the way the market behaves today is very critical because there could either be a situation where strong support is taken from a 5160-5170 kind of a level, which also coincides with the previous low of this month and also the 200 day moving average. But more importantly, some of the other indicators that we track in parallel with the charts also suggest that at the Nifty level it could actually be a capitulation that is visible this morning itself. However, on a broad based equity parameter that we follow, we think that it will be preemptive to look at yesterday