Nifty could slip to 7800 in November F&O series: Edelweiss

Corporate earnings, the Federal Reserve stance on interest rates and the Bihar elections will be the three factors driving market sentiment near term, Yogesh Radke, Head of Quantitative Research at Edelweiss Securities tells CNBC-TV18.He expects the Nifty to slip to 7800 in the November series.The roll over cost for the November series is around 45-50 basis points compared to an average of around 70 basis points during a bull market.This, Radke says, indicates that traders are rolling over their long positions, but cautiously.Below is the verbatim transcript of Yogesh Radke’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.Latha: What is the sense? 8,140 has held for the moment but is 8,100 still in danger of being seen today?A: For the day, for sure I am expecting a bounce back in the market towards the end of the session. On an overall perspective the market has seen weakness for the November series. So, for the day, we may see some bounce back but for the November series I am expecting some more lower levels to be seen in the market.Sonia: When you say lower levels what are we looking at? Do you think 7,500 level could hold or is there a threat that in the November series that could break as well?A: 7,500 would be too low for that purpose. Obviously, we will have to evaluate how the market moves and how the events will shape up right from the Bihar elections to the Fed meeting and even the corporate results. All the three events would be driving the market.At this junction, I would look at something like 7,800 level to be seen on the Nifty by the November series. If the pressure increases and the corporate results will not be as per the expectation, we may head lower, but that would be further after the November series.For full discussion, watch accompanying video