The Nifty has had a huge upswing in the month of june from 5,400 levels to 5,600 currently. Monal Desai, VP Head Institutions Derivatives at Prabhudas Lilladher expects the Nifty June futures expiry above the 5,600 mark.
"You might not see too much of an impact in terms of the large upswings, but that gives a sense that there are enough shorts in the system to carry this game further may be 5,650 first and then 5,700," he tells CNBC-TV 18. Below is a verbatim transcript of his interview with Latha Venkatesh and Anuj Singhal on CNBC-TV 18. Also watch the accompanying video. Q: Nifty is stable around 5600, 10 points higher than 5600 actually. Is that the way you would expect expiry today? A: Yes, definitely above 5,600. What has happened is the last two-three days the entire pivot has shifted from 5,400 strike to the 5,600 strike. With huge additions in the last two days in the 5,600, all indicating that yes, market is now discounting everything in terms of the global fears and the negatives are also behind us now. So for the time being, yes 5600 definitely for the expiry looks there. You have the largecaps also participating, Reliance, ICICI Bank, SBI, ITC, Lever. So there is some play over there also. Q: What are the odds that, there are still too many of short positions in the F&O space in the market and you could see a violent move towards 5700 as you reach 3.30 pm today? A: 5,700 is a bit too ambitious, but 5,640-5,650 is what I reckon, that is the maximum short which could happen. But Nifty, if you see the spreads have come down since yesterday. They were hovering around 20 points between June and July but they have come down to about 12-13 points, since morning they have been coming down. So basically short role play is in progress. There are ample of short bids in a system being carried forward. You might not see too much of an impact in terms of the large upswings, but that gives a sense that there are enough shorts also in the system to carry this game further may be 5,650 first and then 5,700. Also Read: Nifty to touch 5,750 in July-F&O series says MF Global Q: Bharti, one of the strongest stocks is down 3% today. Is it just profit booking on expiry day after a good series or would you say there is something more to it? A: There are other stocks which have picked a momentum, banks are definitely there and there are some midcaps also. So profit booking would be there and for Bharti I see is about 14% built-up in the open interest and now at the end of the day there would be mainly square off positions. Bharti would be buy on dips kind of a stock. Q: Actually stock wise if you have any view on which stocks might see these unusual movements towards end of the dayDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
