Exclusive: Should you sell rate sensitives ahead of policy review tomorrow?

Check out the trading strategies for interest rate sensitive stocks and other frontline counters with Navneet Daga, derivative analyst, KR Choksey Securities.


Smartinvestor : The markets have begun traduing in the new week on a cautious note. What are the key Nifty levels (cash segment) you are keeping a tab on? Could we see some profit booking in the days ahead?

Navneet Daga : Well the range had been very well defined on nifty from 5850 to 5980 levels, any breach of these levels would invite major trigger. But options data continue to suggest this kind of range bound movement to continue, we have major buildup on 6000 strike call and 5800 strike put options

Navneet Daga : Suggesting major support and resistance points on nifty as 5800 on downside and nearly 6000 on upside.

Smartinvestor : What's your call on Hindalco and Tata Power? They are among the top Nifty gainers today.

Navneet Daga : Well commodities should be buy on dips counters, hindalco among our top pick in it, traders should go long on it near to 120 levels keeping strict SL of 115.5 and ride the momentum towards 128/132 kind of levels. While tata power is very range bound stock with major supportzone near 102 levels, this stock is facing lot of resistance near 110/113 levels untill those levels are taken out, no major breakout is visible.

Smartinvestor : How should one play the rate sensitive pack - banks, autos ahead of the RBI policy review tomorrow? Do you see a build-up of short position in these counters? What does the F&O data suggest?



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