The sizable bearish derivative bets on large private banks averted a possible crash in their shares after a tumble earlier on Thursday. Check out the trading strategies for these stocks with Anil Manghnani, chairman, Modern Shares & Stock Brokers
Smartinvestor : The markets have opened firm today with the Nifty closing in on the 5,950 mark. Do you expect another round of profit booking ahead of the RBI's policy review on Tuesday? What are the key Nifty levele (cash market) you are keeping a tab on?
Anil Manghnani : Yesterday was a big day for the Nifty...I feel we saw a big reversal bar. We are seeing some follow thru today. I feel 5971 top is one important hurdle for now. The big unwinding of PUTS by FII's was also a huge positive.
Anil Manghnani : From a positional point of view your stop is 5780. From a trade point of view suppose the Nifty corrects from here u work with a 50 percent retracement stop. So, you take todays high and yesterdays low and work out the 50 percent correction level, if it breaks that then as a day trader you will be out of longs.
Smartinvestor : How would you play the banking pack given the carnage and then the recovery we saw yesterday?
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