Signs of positional trades being built systematically in Ola Electric shares: Anand James

economictimes.indiatimes.com:

Newly-listed Ola Electric's 75% rally from IPO issue price has caught both traders and long-term investors off-guard. Anand James, Chief Market Strategist, Geojit Financial Services, says. However, the timeframe is short to conclude whether the EV stock is now in an overbought zone, there are signs of positional trades being built systematically..

«Daily volumes have declined since the first day, while intraday volumes are tapering through the day. This does not suggest a FOMO trade,» he says… Edited excerpts from a chat:

Nifty has been largely stuck in a narrow trading range of 400-500 points for the last few days. After Friday's upside, do you see signs of a fresh breakout on the upside?
Anand James: We had gone in last week, with the expectation of achieving 24540, as long as the downside marker of 23975 held.

It took a week long wait to achieve the objective which saw multiple attempts to push higher being hammered lower. Incidentally none of such distribution led downsides failed to penetrate 23975 either, due to lack of momentum which was seen in the week before last as well. VIX also fluctuated, ensuring that directional views suffered.

But with VIX easing and momentum indicators strengthening, we are encouraged to drop our guard a bit and adopt a trend following approach in the coming week. However, our objective for the time being is limited to 24900 as 64% of Nifty 50 stocks are trading above 20 day SMA as opposed to 30% on Wednesday, while only about 53% of NSE 500 are now above this key SMA as opposed to near 30% on Wednesday. We are inclined to believe that next week could see a broad based revival in stocks, which may limit inflows into Nifty 50 stocks, potentially delaying the re-entry into the 25k