Market on strong footing: Time exit or more upside left?

The market has begun the December F&O series on strong note on signs that domestic institutions are buying once again. Metals, banks and power companies have been leading, but bouts of profit-booking is evident at peaks.

According to Dipan Mehta, Member, BSE & NSE, anticipation of positive news relating to opinion polls and extremely favourable global cues is boosting the market sentiment. "We have a fabulous earning season, so lots of ideas popping up every now and then. We are seeing that in a lot of midcap stocks," he recommends. Meanwhile, Pritesh Mehta of IIFL tells CNBC-TV18, one can turn more bullish on the market if Nifty manages to breach 6,212 today or on Monday. The Nifty is now trading very close to the resistance of 6,200-6,210 and if previous stop is crossed one can expect 100-150 points upmove from here. He further added that short-term traders can maintain a positive bias. Eyes on RBI guv, rupee; not so much on poll rhetoric, says PIMCO  Below is the edited transcript of the interview. Q: It has been a very good start to the December series, what is your sense, can someone buy in at current levels? Dipan Mehta: Yes, I think that market is showing strength after being sideways to declining for the past few trading sessions. This build up may be taking place on account of expectation that the opinion poll, which will come in before the actual results may be quite positive. We also have the four state election results to look forward to. Some amount of buying is in anticipation of that positive news. At the same time, global cues remain extremely favourable and that also is keeping the sentiment up. In any case, we have a fabulous earning season, so lots of ideas are popping up every now and then. We are seeing that in a lot of midcap stocks. Q: How are the charts looking at six-seven months, is there more headroom, should people board the bus now or should a day trader exit at this level? Pritesh Mehta: The charts are surprising in today’s trade. Broadly speaking Nifty is developing a trading range between 5,970 on the downside and 6,250 on the upside. The movement recently has been extremely choppy within this range. The best approach to trade this market has to take a day-to-day view. We have already seen a lower top picking craze last week. So, at higher levels we could see some amount of resistance coming in the market. However, for a bullish confirmation Nifty needs to negate its lower top formation at 6,212. If it does so in today’s trade then we could see that market inching higher. But in order to do that, we require participation of Bank Nifty. If 6,212 is taken out today or day after, we could certainly be bullish on the market. But the market seems to be suggesting a mildly bullish bias in the morning trades and it is working out. Now we are trading very close to the resistance of 6,200-6,210. If we are able to take out the previous stop in today’s trade or on Monday then we will have a clear signal that there is more room on the upside, we can see 100-150 odd points move on the upside. So for a short-term traders, we have to maintain a positive bias.