Cash on dips, July series looks to be better: Anu JainPosted on Monday, June 27, 2011 - 09:20 am
In an interview with CNBC-TV18, Anu Jain, Senior Vice President, IIFL Private Wealth Management says, the Nifty has support at 5,370 and resistance is at 5,557.
Will the dips be an opportunity to buy? Yes, she says. It does look it is going to be an opportunity to buy, the next series is going to be far more positive., she adds.
Below is the transcript of her interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy. Also watch the accompanying video.
Q: Has Friday changed anything technically for you?
A: Absolutely. If you look at last Monday, when we were completely bearish, we said 5,170-5,180 looked support. But nobody thought, last Monday, that things would happen that way. Having said that, the way it held on to those levels and the way the shorts couldnt break the market was definitely the first signal. Last Monday, the banking had started giving support and that is what held on during the fall. Fridays close has definitely changed not just the Nifty outlook, but an index outlook for a lot of the other indices as well, be it the IT index, bank index.
Will the dips be an opportunity to buy? Yes, it does look it is going to be an opportunity to buy. So, I would say probably support now stands at 5,370. You have actually just moved back to the previous range and 5,370 now becomes the support and 5,557, which we were looking as resistance, comes back to the same zone.
What is positive? Oil and gas continues now to come into from outside of oversold zone towards zone where it would probably be positive, HPCL , BPCL both giving about 5-7% breakout, same with ONGC . That should have a positive impact on the indices.
Banking index is at 10,850 and has taken support at 10,720. It is now at least going to try to attempt the 10,950-11,000 where there is a lot of resistance
Same with the IT index, it is closer to resistance about a 1% higher, but they look more positive than what they have looked for the last four-five weeks. Also, this is an expiry week. So, I would say if there is any pain that we see between now and Thursday-Friday, it would be an opportunity to buy because probably the next series is going to be far more positive.
Q: The two stocks, which did so well on Friday, was a beaten down SBI and beaten down Infosys, do you think they have made bottoms?
A: If SBI stays at these levels, another Rs 15, it is definitely giving a breakout for about 4-5%. Bottom formation, I would say closer to that, but I would like it to trade at these levels before I get the confidence. The private banks are giving far more confidence. So, if you look at an Axis Bank , if you look at an ICICI Bank , a Yes Bank even Kotak Mahindra Bank , which looks very good, I would have a little more confidence. But bottom formation happening in SBI, cannot say it has happened. You just have to see that it stays at these levels because if this kind of takes support Bank Index to cross that 11,000 index level would be far easier.
Infosys again similar story, had given a breakdown, looked like it is going to go down, did go down that one particular day has comes up. I think now its poised more towards the Rs 2,920 kind of levels. If somebody wants to trade between the two, I think Infosys and TCS both have a positive bias and the index itself now has a positive bias. But if it is looking at a relative index kind of a situation then probably banking is slightly stronger.
Q: What is your perspective on Kotak Mahindra Bank?
A: The chart formation is good. Last week ICICI Bank was looking promising, it has moved, it has got closer to resistance. Kotak yet has more scope. So, it has closed at Rs 447, if there is a dip in the morning right up to Rs 436, this would make a good opportunity to buy. I think it is poised for Rs 472. This is one of the banks which is over its 50 day moving average and has attempted the 200-day, Rs 445. I would be looking out for any dip to get into the stock.