Amit Gupta, ICICI Direct believes that 5600 is a very critical support level for the Nifty. He told CNBC-TV18 that the volatility has also started coming down. "It has come down from 21.5 to almost 18 levels and that is why we feel, we are going to have some positive sessions", he added.
He further said that it maybe a range bound market, but one can utilise the declines to go long. So, it is going to be more stock specific.
According to Gupta, Hero MotoCorp has seen lot of short built-up. It was outperforming the market around Rs 1,600, while the market was cracking down. It was forming a base and now it is slowly inching up. Since the shorts are getting covered and that is why he feels that on the higher side Rs 1,700 can be achieved in the stock in the coming sessions.
On the other hand BPCL has come down to a very good value area of Rs 345-350 levels. "Historically, whenever the stock has come down to these levels it has always bounced", he said. So, it is very much possible that it can retrace towards Rs 385-390 levels in the days to come.