Momentum has been rather good in this rally and there are chances of seeing higher levels, says Nischal Maheshwari, Edelweiss Financial Services. He sees Nifty heading to 5,950-6,000.
If Nifty heads to 6,000, then Maheshwari advises investors to sell banking stocks considering the economic scene.
Below is the verbatim transcript of Nischal Maheshwari's interview on CNBC-TV18
Q: Would you use this rally to sell?
A: I am very tempted but I would like to wait out because momentum is pretty good in the rally and I believe we may see some higher rates. I think two-three things have come together on the fundamental side. You have seen the US postponing the Syria attack. We are seeing some efforts done by Reserve Bank of India (RBI) to bolster the rupee. These are working for the moment. So, some of these things are coming together so I see market may still head higher from these levels.
Q: What are the levels on the upside that you would work with on the Nifty?
A: I think 5,950 or maybe up to 6,000 is a fair number which the market can hit.
Q: If it comes closer to 6,000, where would you lighten first?
A: As far as the economy is concerned I would be worried where we are headed because the Q2 numbers once again is going to be bad for the banks. We are not seeing much movement on the ground as far as economy is concerned. So, banks would be one of the sectors where I would lighten up.
Q: As a trigger for the market, how important would the 20th RBI policy meet be?
A: It is important given that that’s going to be the first statement of the new Governor and though he has spoken about what he wants to do as far as the rupee is concerned but he has not spoken anything about the monetary side. So, it is going to be keenly awaited and September 17 or 18 is going to be Fed meeting and that is going to be important given that if the quantitative easing (QE) withdrawal is going to be triggered then it is going to be fairly important thing, September 20 is going to be very important on both these cases.
Q: What would you buy in pharmaceutical space?
A: I would be comfortable with large caps given that the visibility is strong and people do have exposure to international markets, especially the US. So, we like Lupin, Sun Pharmaceuticals and Cipla for the moment.