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Bank Nifty to be lead gainer if Nifty gains 500pts: Antique
If 5,200 levels hold, then it is a double neckline, where it has come down to reiterate its support, said Shruti Vora of Antique Stock Broking. Moreover, she told CNBC-TV18 in an interview that the consolidation between 4,700-5,200 levels is likely to see the Nifty testing above 5,700 levels. "Still, I would put my stop losses for all trading longs at about 5,000 levels," she added.
She further stated that the Bank Nifty could be the lead gainer if Nifty gains 500 points. However she feels the worry currenlty is the sustained activity below the 5,100-5,050 levels.
Meanwhile, she also indicated that some sectors like auto, Bank Nifty and FMCG have been showing a positive bias as they made fresh highs in the last week or so.
Here is the edited transcript of her interview to CNBC-TV18. Also watch the accompanying videos.
Q: Is the Nifty still in an intermediate uptrend or are you feeling hesitant after the moves of the last couple of days?
A: We highlighted the possibility of an upside breakout on Nifty pre-Diwali, which would have trigged only owning to some news flows. Inline with that, we saw the breakout above 5,200 levels last Friday.
The huge gap opening, one saw on Friday, was also filled up over the last three sessions. If 5,200 levels holds, then it is a double neckline, where it has come down to reiterate its support.
In this case, the consolidation that took place over the last 11 weeks between 4,700-5200 levels is likely to see the Nifty testing above 5,700 levels. However, I would put my stop losses for all trading longs at about 5,000 levels.
If the Nifty goes below the 5,000 levels, then it makes sense to trigger a stop loss there. There is a lot of bullish bias coming in, owing to the RSI divergences which were lead indicators earlier.
Some sectors, which are showing a positive bias in the case of auto, Bank Nifty or even FMCG is probably the only index which has made a fresh high in the last week or so.
Q: Wouldnt you worry too much if 5,200 levels gets taken out because of some volatility during the course of the next few days?
A: If it comes to 5,200 or 5,100 levels on an intraday basis, I would not be worried. The sustained activity below the 5,100-5,050 levels would worry me because the pattern can be negative. Holding 5,200 levels is a positive sign.
Q: How would you approach the Bank Nifty now?
A: Bank Nifty is currently about 9,900-10,000 levels. Around 10,300 levels is a critical pain area because that level has acted as support in the previous occasions. SBI have been looking very good. Some of the stocks, which are giving indications, could see a potential upside from the current levels. A lot of banks like PNB, IOB, Federal Bank, Canara Bank and IDBI look positive on charts.
In the heavy weight, SBI and PNB have been showing bullish development on charts. SBI has taken support at Rs 1,700 level, which is a monthly trend line from 2001. The level of Rs 1700 could be an intermediated bottom for SBI. Any good news can take the stock to about Rs 2,100 levels.
If 10,300 levels get taken out on Bank Nifty, then we could see a 800-1000 point up move. In this case if the Nifty is up over 500 point, Bank Nifty could be the lead gainer.
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