F&O cues: Buy RIL, Tata Steel, Bank Nifty on any further correction

After a weak opening, the markets have slipped further with the Nifty edging below the psychological level of 5,500 and the Sensex gave off 122 points to trade at 18,611.

The ongoing downtrend, however, offers good investment opportunties in some of the blue-chp counters at cheap valuations.

Check out the trading strategies with Shshank Mehta, Derivatives Strategist, Shah Investor's Home.

Smartinvestor : Markets have been on a downtrend in past couple of weeks. How are you approaching trades today?

Shshank Mehta : We continue to remain cautious as we believe the benchmark indices are in uncharetered territory with the trading range also shifting downwards. We want to wait and see Nifty Futures can trade comfortably above 5550 and Bank Nifty above 9740 levels, only then there is any chance of a relief rally with strong resistance seen at 5690-5700 levels in Nifty Futures and 10100 in Bank Nifty Futures. Till then we continue to remain bearish on the markets.

Smartinvestor : Are you recommending your clients to short markets at this juncture or do you believe that a further fall in Nifty will give a better opportunity to BUY?


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