Nifty may see profit-booking if it breaches 6025: Edelweiss

A: They will not get a chance to go short because it will open with a gap. I think 6,100-6,150 is a good support level and that is surely going to be broken this morning since we will open with a gap of about 70-80 points. One needs to stay out and watch whether we stick at those levels or whether we bounce back.

If we bounce back, then one should look at going long once the bounce back happens, but in case it does not then we will have to review.

If it breaks 6,100-6,150 decisively then we will have to review our position one we may see downside opening up then you could look at going short but this morning it is a no trade zone. I think one need to wait out and watch.Q: Couple of days ago when the market had breached the 6,150 level we were speaking with you and you had indicated that some of the long-only funds etc are facing some amount of redemption pressure. Do you see a lot of liquidation from long-only funds and do you think we could head much lower because of this?

A: Right now it is very difficult to say whether we will head much lower than this or not. That is the reason I said that today we need to wait and watch whether there is buying coming in at those lower levels. We need to see whether we take support at those lower levels of about 6,025-6,050. In case that happens then we will see weakness, we will see all those people who are sitting on profits, who have bought in the last four-six months start booking profits.

That will add more pressure. Traders will go short, so that will add more pressure. In that case we could have the lower-end of the market, 5,800 to 6,000, opening up.