Feb 21, 2013 10:55 PM IST | Source: CNBC-TV18

Nifty may not reach 6020 before Budget, bet on OMCs: Baliga

Ambareesh Baliga, Independent Analyst believes that market may not breach the levels of 6000-6020 before the Budget. For today, market may take support at 5,550-5900 levels, he says in an interview to CNBC-TV18.

Ambareesh Baliga, Independent Analyst believes that the market may not breach the levels of 6000-6020 before the Budget. For today, market may take support at 5,550-5900 levels, he says in an interview to CNBC-TV18.

Also read: Sell on rallies; mkt may sink to 5500-5600 says Sukhani

From the oil and gas sapce, he suggests buying the Oil Marketing Companies (OMCs) at the current levels. He also believes that there is stock picking opportunity in some of the midcap stocks.

Below is the verbatim transcript of his interview on CNBC-TV18

Q: How is it looking not many trading sessions to go before we get to the Budget, what do you expect to see for the Nifty?,

A: Nifty will be in a range; I don’t think we will see it crossing 6000-6020 easily before the Budget. Looking at the way Asia is today and looking at SGX Nifty, I think Nifty will move more towards 5900 levels. There is support at 5880-5900 levels, so today it should take support somewhere close to that.

Q: What would you buy in oil and gas now?

A: In oil and gas, the Oil Marketing Companies (OMCs) should be the best bets because they have been ignored by the market for so many years. We have only seen some move in the last four-five weeks after the change in the whole game plan for this sector.

At these levels it makes a lot of sense because it is just the beginning of the move for the OMCs. We have seen some correction in the last one week to ten days, so these are the levels to start buying.

Q: What have you made of the recent pullback in some of these midcap stocks?

A: There is credibility crisis in the midcaps and all of them are being painted with the same brush. After a major fall of nearly 40-50 percent, which we saw in quite a few of them, it is quite natural that you will see some bounce back.

However, when the market gets into the correction mode like what we will see today, you will see that midcaps are correcting much more. But one can still pick and choose a few of them even in this crisis because you don’t have all the managements where there is credibility crisis. So, surely this is a stock picking opportunity no doubt for a few stocks.

Q: Do you track Jaiprakash  group stocks, yesterday Jaiprakash Power Ventures was under quite a bit of pressure but they have raised some amount of cash for themselves.

A: I don’t track Jaiprakash Power but Jaiprakash Associates at these levels makes some sense because it has cracked from those levels closer to about Rs 98-100 and from there it has come to Rs 72-75 levels. When there is talk of the cement sale, I would see that as a trigger and one could again see levels of about Rs 85-88 for the stock. So at these levels there is not much of a downside.

Q: Would you buy the morning weakness or is this a no trade zone for you?

A: I would surely buy the morning weakness. I see support at Rs 5880-5900 levels. So from an extreme short-term point of view, one could look at buying closer to those levels. Possibly later in the day, we could see a bounce back. If not today, then tomorrow we may see a bounce back.

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