Nifty may see support at 5300-5400 levels: Religare Sec

Ashu Madan, president of equity broking at Religare Securities Limited, in an exclusive interview with CNBC-TV18's Latha Venkatesh and Anuj Singhal, spoke about concerned investor sentiment looming over the market, and where he sees it headed.

Below is the verbatim transcript of the interview. Also watch the accompanying video Q: We had an eventful week: earnings, on the margins front, looked slightly disappointing and there was a big shocker from the RBI. How are you reading the market? Is it an entry point? Can you see some sort of stability? A: This is not an investor's market. We might see a prolonged phase of dullness. Events like Reserve Bank of India's (RBI) policy rate hike offers some delight to traders with volatility. Since we have already corrected again, Nifty is likely to remain range-bound between 5,300 and 5,400 levels. Barring global markets, the macro fundamentals are conducive for any run. The banking sector can lend a spike because it is technically overbought and oversold. The market is not aggressively short. To go short at 5,500 is not easy. If that ever happened, the market would have been at around 5,900 levels. A lot of people are being bearish, but talking about it and execution is different ball game. Since we see limited positions, lack of participation and interest at these levels, the range may get narrower. Q:

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's not about shorting at current levels. Since, the beginning of the series or from last year the FII stats have shown quite a bit of selling- those positions still hold in the markets, they have not been covered. What do you think A: Yes, that's right. Q: Do you suspect the trading range to shift a little lower? A: Yes, the 5,950 levels would come down to 5,750. The Nifty should lend support at 5300-5400 levels. However, a concern of European problem making a comeback continues to loom; 'quantitative easing' would not last for ever. If something happens on that front, we might see some more reaction on the market. However, the market will fail to spice without any major trigger like heavy technical bought-sold positions. The market is not going anywhere decisively. Q: Are you looking at relative outperformers in every sector? For instance, would you buy an ICICI Bank in the banking space? How would you advise an investor to move forward? A: It