Largecap stocks good bets on lower side: Mutha

Largecap stocks would be the best bets on the lower side, says Karun Mutha, HSBC Invest Direct.

Mutha told CNBC-TV18, "The midcap stocks had a good round of session, particularly in the last two trading sessions. Of course Suzlon on some corporate news floating around or some rumours of some corporate news floating around had a bit of short covering and so with so many other midcap stocks. But the exciting piece of it what we had seen is good amount of short covering happening on most of the banking stocks particularly the frontline stocks like State Bank of India or an ICICI Bank. We did not see a large rise in the open interest but a marginal right with significant price movement was to be seen."
He further added, "Also note that the Nifty Futures are even though they are quoting on par but there is an element of dividend that has been built-in and the May Futures to the extent of 7 points and almost 28 points on the June Futures. So these are not really panicky situation that probably are to be seen. I think the largecaps would be the best bets on the lower side and perhaps 5500 should be a good level to enter into certain largecap stocks probably with a view of at least moving on the Nifty of 100 points on betting of short covering."