The market has been trading in a close range of 6150-6250 since last couple of trading sessions without any major possibility of a breakup or a breakdown. Speaking to CNBC-TV18, Anu Jain, IIFL Private Wealth Management says that if the market can hold on to 6,195-6,220, the move will mostly be upwards but if it breaks below 6140 then it may reach 5,960-5,950 soon and will be equally poised between the breakdown and the break out right now. Talking stock specific, Jain is bullish on ITC and FMCG stocks and believes L&T and Crompton Greaves are yet to bottom out.Also Read: Inflation, strangely low, holds key to 2014 Fed policy
Below is the verbatim transcript of Anu Jain’s interview on CNBC-TV18
Q: For how long can 6,150 to 6,250 test the patience of traders and which side will the Nifty breakout?
A: We have consolidated around these levels for quite some time, about six-seven sessions. I think another session or two and there should be a breakdown or a breakup. The fact still remains that on Friday the way we did and gave up, has given a negative bias but that is getting cleaned out if we are opening 20-25 points as the SGX is showing up. If we manage to close 6,190 and plus for tomorrow, given the fact that we are expecting inflation numbers today, only post that market will get the big move. If we can hold on to 6,195-6,220, the move is going to be mostly upwards and equally poised between the breakdown and the break out right now.
If you break the 6,140 kind of levels, you will see 5,960-5,950 levels pretty soon. So, today-tomorrow, one should see the breakout-break down coming in and it is equally poised towards both sides.
Q: With regards to January series, have the markers changed, both on the downside and the upside or is it still extremely range bound?
A: If you look at the type of stocks which were moving, there is a slight change, you had infrastructure leading the pack, which is now gone into a slight back foot and the way Larsen and Toubro (L&T), Crompton Greaves and Voltas have corrected, it is showing that the trend is changing.
The way we saw a change towards fast moving consumer goods (FMCG) on Friday also is a marker and now given the fact between today-tomorrow – it is a confusing signal but at times market takes its time to give a signal. As soon as clear-cut signal comes whether it is on a breakdown at 6,140 or a breakout over 6,230 closing, one would have clear parameters but I would watch out ITC and other FMCG giving buy signals and L&T and Crompton not yet bottoming out.
Q: How are you approaching Tata Motors, do you see that stock get back to 52-week high or record high of Rs 405 that it hit and if yes, would this be a good time to buy Tata Motors?
A: At Rs 367 with today’s news, it would have a positive bias but it has strong resistance at Rs 374-375 zone. If it can hold on to that then that would be a positive sign to move towards Rs 400 levels but the stop loss for any of these positions should be above Rs 355. If it manages to cross Rs 374 then keep Rs 367, Friday’s close as a stop loss. So Rs 374 is a tough resistance, crossing that would only give it a positive bias.
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