Nifty unlikely to dip below 4730, time to buy: Experts
Manoj Murlidhar, head of derivatives at IIFL PReMIA and Ambareesh Baliga, chief operating officer at Way2Wealth, in an interview to CNBC-TV18, gave their reading of the market.
September 26, 2011 / 16:13 IST
Domestic market is sailing through rough weather since a long period of time. Although most experts have said that the recent fall in the market is a follow up to the August series, investors are worried about how the market is going to perform in the future since there is no sign that suggests stronger recovery.
Manoj Murlidhar, head of derivatives at IIFL PReMIA and Ambareesh Baliga, chief operating officer at Way2Wealth, in an interview to CNBC-TV18, gave their reading of the market.Below is the edited transcript of the interview. Also watch the accompanying video.Q: How crucial is this giving up or piercing through the 4,800 mark?Murlidhar: We had an expiry at 4,840 and 4,800 was a strike, where we had seen the highest put writing. Since the last couple of days, it was Bank Nifty, which was trying to be resilient because we were not really seeing good shorts there. Today morning a fresh short of 7% came in, but this entire short seems to have unwound. So the put writing, which has happened, is somewhere close to a Rs 90 to Rs 100. Hence, the breakeven still comes at 4,700 or 4720. Expiry will come in another three-four days and banks is one sector, where we are seeing some short unwinding because we are looking at the spread between the Bank Nifty and Nifty and this spread is points out the rate of money which comes into Nifty and Bank Nifty. This rate is somewhere close to Rs 367. Thus, people are willing to short-role their Bank Nifty positions but on the Nifty front, 4,730 should be the base and we should not be seeing the Nifty go below that. We are seeing this selloff today because we are seeing the commodity markets adding to the momentum from the 4,830 levels. Thus, Bank Nifty can provide some respite because we are seeing some shorts that are been covered in the intraday trade.Q: We are 40 points away from our yearly lows of 4,720; do you think there is lot more downside left?Baliga: The Nifty is likely to find support in the zone of 4,720- 4,750- 4,800 and I don't see this zone actually being broken down. It is true that there is clear risk aversion as of now as even the gold prices have fallen, the commodity prices have fallen. However, I feel that falling of commodity prices is a positive thing for an economy like India. As far as the rupee is concerned, I don
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