It's a good opportunity to create fresh trades: Rohit Srivastava

economictimes.indiatimes.com:

«The question really is, are you going to go either into a long consolidation or a deep direction? I think neither of those right now yet very-very clearly. All that has happened is that you have broken the 20-day average both on the Nifty and Bank Nifty which gives us another 1% to 3% kind of downside,» says Rohit Srivastava, Indiacharts.com.If I am a positional trader and I have been riding the market for a few months now, however, much compulsive trader I am on the long side suppose, one was getting completely exhausted on any fresh long ideas because everything seemed to have gone up. So, if a cut actually happens, will it make markets healthier and how severe could it be in your view, just a shallow cut or could it get deeper?It is an interesting question because if you think of yourself either as a positional trader or investor, you hope to buy at much lower levels.

But if you are holding on to a position, is this cut really going to change the overall direction of things? When you have big gains on the table, probably a lot of stocks get triggered on a day like this where you are trailing your levels and then you get a re-entry at a different price level. The question really is, are you going to go either into a long consolidation or a deep direction? I think neither of those right now yet very-very clearly.

All that has happened is that you have broken the 20-day average both on the Nifty and Bank Nifty which gives us another 1% to 3% kind of downside. So, say around 19,430 or 19,300 on the Nifty and say 44,800 or worst case 44,550 on Bank Nifty, so those are the levels up to which we are looking at some downside.