Market to be range bound between 7960-8050: Yogesh Mehta

On F&O expiry, some pullback was seen in market on Wednesday, which seems to have tapered off. The upside for the market is expected to be in range of 7960 and 8050, Yogesh Mehta, associate VP of PCG Advisory Equities, Motilal Oswal Securities said. “Unwinding positions is not showing at all in the market and that is why we will see some restricted upside on the market because the long positions are still there,” he said.Mehta has a buy call on IndusInd Bank, UltraTech Cement and Mindtree.Below is the verbatim transcript of Yogesh Mehta’s interview to Latha Venkatesh & Sonia Shenoy on CNBC-TV18.Sonia: Considering that it is futures & Options (F&O) expiry today how would you trade?A: On F&O expiry, we have already seen pullback yesterday and day before yesterday to the extent so, we think that now it had been tapered off and whatever rollover has done to the best of the three months average above that and with a lower basis points. So, we think that now upside or the range for the days would be somewhere around 7,960 to 8,050 in between. So, it would be a very choppy kind of a day rather than expecting any volatility on the expiry day.Latha: Would you trade only stocks or are you trading the Nifty Bank as well?A: Not certainly Nifty Bank, but on the stocks certainly yes. On that, we are recommending for the intraday purpose only IndusInd Bank that seems to be strong buy. Current price is Rs 1,082 and keeping a stop loss of Rs 1,075 in future segment. We can look at Rs 1,095 as a target. The other one is on the IT sector – Mindtree. I have already recommended this on Monday as well on the same show. So, from Rs 497 it is now today Rs 510, a crucial resistances level has surpassed on the closing basis yesterday. So, still it is a good buy and keeping a stop loss of Rs 500 we can look at Rs 530 as a price target. Even if it is a carry forward for the positional purpose with a same stop loss one can look at Rs 540-550 range as a target. Latha: You also have a buy on UltraTech Cement?A: UltraTech Cement on the cement side we have already seen a drag from Rs 3,900 to 3,100 in this last one and a half month. However, from here it is showing a good sign of retracing. Currently, it is quoting at Rs 3,160; we are looking at Rs 3,220 to 3,230 as a target keeping a stop loss of Rs 3,125.”Latha: How are the rollovers panning out? Would you be worried about any pockets or would you be confident about any pockets?A: Rollover analysis, what we have seen as on yesterday it is showing that it is better than last three months average in terms of stock futures as well as the Indices future. However, the thing is the rollover might be because all the stocks and sectors have dragged badly, so that is why there is less interest of losing the positions. So, unwinding is not happening and people want to carry forward. Bips are also at 36-38 basis points rollover, so it shows that interest on losing positions, unwinding positions is not showing at all in the market and that is why we will see some restricted upside on the market because the long positions are still there.