Super bullish Tushar Mahajan of Nomura Financial Advisory feels that although Nifty may hit fresh highs before expiry, Bank Nifty will hit 20,000 before Nifty reclaims 8600.
Sectorally, he expect metals stocks to continue underperforming, he says in an interview to CNBC-TV18 adding that investors are now looking at the cement sector as a proxy for recovery in the infrastructure space.
Below is the verbatim transcript of the interview:
Sonia: It been slightly rocky start to year although yesterday was a very good day but what is the sense you are getting about how the rest of the series will shape up? Do you feel or rather looking at the internals do you get a sense that we could breakout of this range on the upside?
A: It’s been a rocky start in the sense that just last Monday we saw the biggest fall in almost five years with the Nifty loosing three percent and then yesterday we saw a biggest gain with Nifty gaining again about three percent in the last seven-eight months a biggest gain at that time. It has really spooked a lot of market participants and that is probably also indicative in the volatility levels in the market.
My own sense though is that with the kind of move that we had yesterday and in general the over bearing positive sentiment that this move has kind of created on the markets. We should look to see about the 8,600-8,620 which was the previous high which the markets hit earlier before the end of this expiry.
On a time to time basis I would not be able to say where we expire the series but a headed of the expiry we should definitely look at those highs once again. So, over the next 10-12 days we should probably looking at an 8,600-8,620 level so that typically means that we could see that breakout happening now.
Latha: What exactly did the FIIs do yesterday in the F&O space?
A: Massively build long positions; we did see a big scrambled for just buying Nifty futures and that is kind of evident in the numbers as well. This kind of an activity one would tend to see that there is either it is a massive short cover or fresh longs. So, what we saw yesterday was that there was massive fresh buying. We also saw a lot of demand for upside calls both through January and February especially given the fact that there is the Budget in the February which will add on to the positive cheer hopefully from the rate cut yesterday.
On the Index side we did see people buying massively into Nifty futures there was a lot of interest in the Bank Nifty futures as well. Also the activity of the FIIs, if you kind of reference that to the Singapore Nifty data as well that was pretty evident there as well, build up of long positions over all from the foreigners.
Latha: How will Bank Nifty trend? You said Nifty will definitely get to 8,620 levels what about the Bank Nifty?
A: Bank Nifty would be the lead to that. I won’t be surprised if we see that 20,000 levels first on the Bank Nifty followed by 8,600 on Nifty.
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