Enter market around 5280 or if 5460 breaks: Anu Jain

The Nifty has been trading in a range for the last couple of sessions. In an interview to CNBC-TV18, Anu Jain, IIFL Private Wealth Management says, one can take a fresh long, only if 5,460 is taken out or if the Nifty drops down to 5,280. "If you are really looking at a point to enter the market, it could be 5,280 on a correction or if there is a breakout on 5,460," she adds.

Also read: Nifty is in a range, don't put money now, says Sudarshan Sukhani Below is the edited transcript of her interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy. Q: What’s the view on the Nifty now? At what position, would you suggest opening a fresh long position on the index? A: We have tested 5,460 and dropped 60-80 points from there. There would be a need to give a fresh breakout. You can take a fresh long, only if 5,460 is taken out or if you drop down to 5,280. There is a good possibility of that now it being an expiry week and banking index being weak. Till that time, there is no real need. So, I would say that if you are really looking at a point to enter the market, it could be 5,280 on a correction or if there is a breakout on 5,460. Q: In this series, the big support has really come in from the oil and gas names, Reliance Industries, Cairn. How would approach these two names now? A: The sector is looking decent to me. I think IT is going to stay pretty strong even this week because that’s been giving those signals of kind of breaking out. The milder signal was in oil and gas. I think Cairn looks good for about Rs 350 and if it can manage to hold that Rs 370. Reliance has slipped back a bit after the breakout. But I think it’s in a consolidation mode. Atleast it’s not going to breakdown. The charts are now showing pretty resilient not to break the Rs 740 kind of levels. I think the strongest in the oil and gas is still IGL. At Rs 262, even today, I would probably look at any dip in the market as an opportunity to buy that because it’s looking good for Rs 270-271. Beyond Rs 271, it gets into a different trajectory altogether where it would probably go up to about Rs 290-300. It would start feeling the gap on the large fall down that we had. So, if I were to look at that sector, I think probably IGL would be a better play in that sector for this week. But overall I think it’s going to be a mediocre sector, it’s not going to be the best performing sector, but would probably give some support at lower levels. Q:  The biggest gainer last week was Ranbaxy. Would you take profits there or do you expect more on the upside? A: That whole sector has really run up. Whether it is Lupin, Ranbaxy, in the midcap name, Venus, Shasun, I think we are in for another good ride in that sector overall. So, even Ranbaxy, at about the current price, is looking like if it doesn’t break Rs 540 level, you are looking at closer to Rs 600 on the charts, maybe not in the same week, but over a period of 10-15 days. I would continue to hold it. I would probably keep a stop loss, if I am holding it close to about Rs 540 despite the rise we have already seen on Friday. I think that would go for the whole sector. So, you have got consolidating stocks like Sun, Lupin, whereas you have got the midcap taking off out here. So, I think this sector is good to go for another couple of percentage points. _PAGEBREAK_ Q: You have a sell on RComm for the day. Can you tell us about that? A: The whole sector itself is looking bad. This stock has been into making newer lows week-on-week. So, if it breaks the Rs 53-53.40 levels, we will first see Rs 51, we could see Rs 48 as well. If Bank Nifty was to give the support because it’s at support market may bounce and you may not see that breakdown. But if it does break then that would be one of the best shorts to play. I do agree that the whole ADAG Group as such is looking good to short, but this with the sector weakness would be a very good play on the short side, if we need to do that. That’s why I said if it breaks Rs 53.40 then for Rs 51 we can play it with a stop loss of Rs 54.50 around.