RIL headed towards Rs 920-925: Tata Investment

In an interview with CNBC-TV18's Anuj Singhal and Sonia Shenoy, Mehrab Irani, General Manager - Investments at Tata Investment Corporation Limited said the market is indicating some bottom formation. He sees the large-cap IT stocks underperforming in the near-term over speculation of major restructuring.

Below is a verbatim transcript of his interview. Also watch the accompanying video.

Q: After 9 days of losses, the market has shown slight stability-would you say things are bottoming out? Technically, how are you reading the market?

A: Nifty made a top of 6,338 levels in November 2010, close to its all time high of 6,357 (January 2008) followed by a bearish grip. Now, from that top of 6,338 levels it fell to 5,200 in February 2011. A couple of weeks ago, it showed some recovery around 5,900 and fell again to 5425 yesterday. During the latest fall, it broke below its 50-day and the 200-day moving average (DMA) with the help of its long black candle day. Also, the existence of two upside gaps was covered yesterday. Once the gap is filled, we have to look at some kind of bottom formation technique. Today, being the daily and weekly closing day, it is forming a 'Harami white' on candle's day.

All of them are inside the bar on charts, signaling some kind of bottom formation. One has to keep an eye on whether it completes at those levels or not. If that happens, then we can say that yesterday