Technical analyst, Shubham Agarwal, Head-Technical Research at Motilal Oswal Securities spoke with Reema Tendulkar and Sonia Shenoy of CNBC-TV18. He shared his reading and outlook on the market and also gave recommendations on various stocks.
Below is the transcript of the interview.
Sonia: We did see significant amount of addition of the 8,300 Put in open interest (OI) yesterday. Do you think that in this series itself that level could perhaps hold?
A: If you look at the weekly chart of the Nifty then we can clearly see that there are multiple shadows that are getting formed which is indicating that for the time being the market might have been overdone on the downside. On a short-term scale we expect that the Nifty should pull back to the level of 8,500-8,600.
So definitely for this expiry we don’t expect the Nifty to slide below 8,300. However, the medium-term trend could be completely contradictory where we are expecting 7,700 but I believe on the short-term scale for short-term traders they should be looking at 8,500-8,600 as an initial target.
Sonia: What about the downsides for this series, do you think that 8,000-8,100 level can now hold as a firm base for this series going ahead?
A: 8,200 is a level, which our statistical models are indicating to be a floor. So 8,200-8,300 is what we are expecting as a floor for this series. As I just communicated that around 8,500-8,600 is what we are expecting on the short-term side, so we should trade with a positive bias and around 8,500 is what we are expecting the expiry to be.
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