Nifty may move down to 5870-5880: CLSA

Here are experts’ equity calls for the day on how the market is expected to trade:

Laurence Balanco of CLSA: With the Nifty falling nearly 4 percent following the failed breakout attempt above 6,330-6,340 resistance provided by the previous peak, we would now look for price action to once again fade to form a right shoulder of a minor head-and-shoulder topping pattern. A break below 6,080-6,107 support should result in move down to the 5,870-5,880 area over the coming weeks.

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Bhuvnesh Singh of Barclays: With most of the asset plays highly leveraged, India may be in need of a new set of companies to invest in further asset rollouts. These companies should have the financial wherewithal to invest in the current part of the cycle where a lack of bidders could produce some of the highest R-O-E assets. Companies with relatively large and unleveraged balance sheets in cyclical sectors include Reliance Industries, ONGC and Coal India.