Worst is not over; Nifty could go down to sub-7500 level: Sandeep Wagle

In a chat with ET Now, Sandeep Wagle, Founder & CEO, Power My Wealth shares his views on markets.



ET Now: What is your take? Is the worst behind us or today’s market action was just a dead cat bounce?





Sandeep Wagle: I would wait for some more evidence. We cannot ignore the fact that we moved from a 7700 and closed at 7950. That is the crucial point, so let us not be in a hurry to decide. Evidence on the ground suggests that there can be a 50-70, maybe, even 100 point up-move. Whether the bottom is done, I am still not convinced. Selling may resume and in case we break the bottom, we may go down sub-7500. I still maintain that. Till such time, play long, play short-term calls, take intraday position. But I really do not think the worst is over. We should not be in hurry to decide on that. We may be disappointed.





ET Now: And if that is the case, how would you position yourself on the Nifty right now? I am sure you would not go via the futures route. Would you play a range for the benchmark?





Sandeep Wagle: In case of 50-100 points jump, buying puts at those levels, 8050-8100 maybe the best strategy. I would also play the futures route. In case the Nifty does not cross 8050 and we see a downward move, this time we may break the prior low of 7700-7670 and then go all the way sub-7500. Maybe it may not happen in a day or two but talk in the next two or three weeks, it is entirely possibly. I would want a very strong close above 8150 and Nifty to stay above that, to conclude that the bottom of 7700.



ET Now: Give me your best idea for today?



Sandeep Wagle: I would go with a buy in LIC Housing Finance with a stop loss of 444 target of 463 and a buy in a Bata which started the move. The move will continue tomorrow with a stop loss of 1055 target of 1125.