If 5,200 levels hold, then it is a double neckline, where it has come down to reiterate its support, said Shruti Vora of Antique Stock Broking. Moreover, she told CNBC-TV18 in an interview that the consolidation between 4,700-5,200 levels is likely to see the Nifty testing above 5,700 levels. "Still, I would put my stop losses for all trading longs at about 5,000 levels," she added.
She further stated that the Bank Nifty could be the lead gainer if Nifty gains 500 points. However she feels the worry currenlty is the sustained activity below the 5,100-5,050 levels.
Meanwhile, she also indicated that some sectors like auto, Bank Nifty and FMCG have been showing a positive bias as they made fresh highs in the last week or so. Here is the edited transcript of her interview to CNBC-TV18. Also watch the accompanying videos. Q: Is the Nifty still in an intermediate uptrend or are you feeling hesitant after the moves of the last couple of days?
A: We highlighted the possibility of an upside breakout on Nifty pre-Diwali, which would have trigged only owning to some news flows. Inline with that, we saw the breakout above 5,200 levels last Friday.
The huge gap opening, one saw on Friday, was also filled up over the last three sessions. If 5,200 levels holds, then it is a double neckline, where it has come down to reiterate its support.
In this case, the consolidation that took place over the last 11 weeks between 4,700-5200 levels is likely to see the Nifty testing above 5,700 levels. However, I would put my stop losses for all trading longs at about 5,000 levels.
If the Nifty goes below the 5,000 levels, then it makes sense to trigger a stop loss there. There is a lot of bullish bias coming in, owing to the RSI divergences which were lead indicators earlier.
Some sectors, which are showing a positive bias in the case of auto, Bank Nifty or even FMCG is probably the only index which has made a fresh high in the last week or so. Q: Wouldn
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