In a interview to CNBC-TV18, Ambareesh Baliga, independent analyst, gives his expectation from the Nifty. Baliga predicts the Nifty will see a good support at 6000- 6020.
While he says that it might take a little while before the market sees a new high, he doesnt rule out the possibilty of one. "It may take a bit longer to reach those new highs, but atleast we are quite stable. I think 6,000-6,020 is possibly a very good support. So, breaking that will be quite difficult for the markets, but at the same time, over the next few weeks one can see those new highs," he says.
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Below is the edited transcript of Baliga's interview to CNBC-TV18.
Q: How is it looking for the tail end of this month? The market has gotten extremely scratchy especially the broader end.
A: I suppose the market will hold on. There might not be a very spirited rally and in a way, it is quite good that there is no bubble building up. We had a bubble building when we crossed 6,000, in 2007, 2008 and in 2010. However, now people are slightly cautious. So, I think it is good for the markets. It may take a bit longer to reach those new highs, but atleast we are quite stable. I think the downside is quite limited from here. I think 6,000-6,020 is possibly a very good support. So, breaking that will be quite difficult for the markets, but at the same time, over the next few weeks one can see those new highs.
Q: What did you make of the big crack in Housing Development and Infrastructure (HDIL) yesterday? How would you approach that name this morning?
A: Infact, I have been quite cautious on the various Mumbai players other than Oberois. It was clearly because of the promoter selling out to a certain extent in the open market that it spooked the other institutional players. So, we could see it still coming down further. I see a level of closer to Rs 75-80.
Q: How will the market read this news on Tata Motors and a guidance being lowered for Jaguar Land Rover?
A: It is a bit negative for Tata Motors, especially after the sort of a spirited run, which we saw, raising Rs 2,000 crore plus would be taken negatively. At the same time lowering of the guidance will not be taken well. So, after the sort of move we saw in the last couple of months, I think you should see some correction and that correction maybe in the region of about 5-6 percent from here.
Q: Do you see more downside on Hindustan Unilever (HUL)?
A: Yes, but then I think the sharp slide is over. From hereon, we may not see a very sharp slide, but I think the upside is clearly capped at Rs 475-480. Over a period of time, we could see levels of closer to about Rs 425-430. So clearly, Indian Tobacco Company (ITC) would be an outperformer. I think one should still take the trade of going long on ITC and going short on HUL.