Trading with PT style
- Thread starter praveen taneja
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The market frenzy has made experts suggesting new highs for the Nifty. In an interview with ET Now, Anil Manghnani, Director, Modern Shares & Stockbrokers Ltd, said that Nifty will take out the previous top of 5181 and move to 5365.
Some experts have said that market touching 5300 or 5400 is a possibility in the coming two weeks. Do you think it is a possibility and do you think that it would come so soon?
I do not know about the time but I guess, yes, things are happening very, very fast. It is difficult to predict the time because market witnessed a 10-day move of 2200 points down and then 1500-1600 points in pretty much six days. So it is tough to take a call on time. From a level point of view, I think the last resistance now is 5050. Above that, I get the feeling it will take out the previous top of 5181 and move to 5365. So I will watch for the 5050 and it comes at a good time because it corresponds with the 50 per cent retracement that happened in the US.
If we take the 14,000 odd high on the Dow and about 6000 odd low, the retracement is about 10,333, which we hit yesterday and the S&Ps about 1120 – not too far from there. So I think worldwide globally, there are many technical levels coming at the same time. Thus it would be interesting to watch what happens here. I will be keeping an eye both on 5050 on the Nifty and about 1120 and 10330 odd on the Dow. If they all three can cross together, then the most recent high on the Nifty also should not be a problem for us.
In which case do you think stock specific action will take place? Would you go long or go short in any of the stocks – at least as far as today’s trade or the next 2-3 days ago?
The surprising thing for me, in yesterday’s trade, was that most of us would have expected that after a 4-5 day move of 400 points on the Nifty, broader market would catch up. But that did not really happen. Although the broader market did participate, it was lead mainly by the large cap.
It is very interesting because when the large cap leads, then you at least have a sense of feeling that more of it is fund buying. So it is stronger hands and not just weaker hands which coming into the market. Thus I think that’s the positive take away from yesterday. But if we break 5050 and move to higher levels where 5350-5400 is possible, then I think, probably, everything will move. I do not think it is going to get stock specific then because you have already got the breakout in the large cap that you wanted and then that would continue and then the broader market would also perform a play catch up. I do not think you will have to get too technical in trying to pick stocks. You would probably ride the wave then.
Source : Economic Times
Some experts have said that market touching 5300 or 5400 is a possibility in the coming two weeks. Do you think it is a possibility and do you think that it would come so soon?
I do not know about the time but I guess, yes, things are happening very, very fast. It is difficult to predict the time because market witnessed a 10-day move of 2200 points down and then 1500-1600 points in pretty much six days. So it is tough to take a call on time. From a level point of view, I think the last resistance now is 5050. Above that, I get the feeling it will take out the previous top of 5181 and move to 5365. So I will watch for the 5050 and it comes at a good time because it corresponds with the 50 per cent retracement that happened in the US.
If we take the 14,000 odd high on the Dow and about 6000 odd low, the retracement is about 10,333, which we hit yesterday and the S&Ps about 1120 – not too far from there. So I think worldwide globally, there are many technical levels coming at the same time. Thus it would be interesting to watch what happens here. I will be keeping an eye both on 5050 on the Nifty and about 1120 and 10330 odd on the Dow. If they all three can cross together, then the most recent high on the Nifty also should not be a problem for us.
In which case do you think stock specific action will take place? Would you go long or go short in any of the stocks – at least as far as today’s trade or the next 2-3 days ago?
The surprising thing for me, in yesterday’s trade, was that most of us would have expected that after a 4-5 day move of 400 points on the Nifty, broader market would catch up. But that did not really happen. Although the broader market did participate, it was lead mainly by the large cap.
It is very interesting because when the large cap leads, then you at least have a sense of feeling that more of it is fund buying. So it is stronger hands and not just weaker hands which coming into the market. Thus I think that’s the positive take away from yesterday. But if we break 5050 and move to higher levels where 5350-5400 is possible, then I think, probably, everything will move. I do not think it is going to get stock specific then because you have already got the breakout in the large cap that you wanted and then that would continue and then the broader market would also perform a play catch up. I do not think you will have to get too technical in trying to pick stocks. You would probably ride the wave then.
Source : Economic Times
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