Market has momentum from a trading perspective: Sajiv Dhawan

Sajiv Dhawan, MD, JV Capital Services in an interview with ET Now gives his outlook on the market.

Do you think that technically at least, unless there are some indications that the market is falling or stocks are falling that you can go with it?

Its exactly the way traders would be playing the market. I have been saying that for the last couple of months probably that you buy the dips, its boring, it repetitive but best the reality of the market the short sellers are not really getting a look here.

We trade the Nifty quite a lot and even we may be neutral but reason for that is because we are looking to take may be 30 to 50 points off the table whereas the before or over the last few years we used to those 100 plus point sort of movements.

The retail exuberance which you are talking about is not there but yes those who were involved are not having too bad at time because there are enough sectors and stocks moving from time to time and they will give you 5%-10% stock like Jet Airways fundamentally its not a stock that we like. We spoke about it of sometime back when it is around 500-530 its up to 700. Now fundamentals probably do not justify but if you are looking from a day trade, positional call then the momentum is certainly there and that over exuberance is not yet there.

Since the retail participation is not heavy perhaps the markets are not peaking that was the point I was driving that technically perhaps the charts look strong there seems to be no reason to believe that there is some bubble out there?

Well I think we are in a bubble in certain midcaps and small cap stocks. I would say that because some of the stocks which you are seeing moving at a very alarming rate but that over exuberance which suggest that a collapse tomorrow no, that’s not there and even if we did sell off I think in the worst case scenario most of the traders would feel is may be a 2% fall on the Nifty which is hardly 100 points at worst may be 150 points down to 5300 levels and that’s not enough to shatter the confidence of the bulls.

So from a trading perspective the momentum is certainly in place whether we go to 5500-5600 that’s not a question but on any given day there are plenty of stocks, plenty of sectors bouncing around and even real estate which has been a laggard is consolidating at higher levels which shows that lot of confidence is returning amongst certain sceptics in certain sectors.