SP Tulsian of sptulsian.com expects the Nifty to be rangebound between 5650-6000 in May series. In an interview to CNBC-TV18, he cautioned that the Bank Nifty is likely to correct on the back of poor Q4 numbers of public sectors banks.
" All eyes will be on Canara Bank, Bank of Baroda, Punjab National Bank, State Bank of India (SBI) and Bank of India earnings and I don't think they will cheer the market. So, the Bank Nifty could correct to about sub 12000," he added.
Below is the edited transcript of Tulsian’s interview to CNBC-TV18.
Q: What are your expectations from the May series?
A: I am keeping my negative stance for whole of May series because the Bank Nifty moved closer to 13000 and is now ruling at 12500. It is also likely to see good corrections and PSU banking results will really be the culprit of that.
Canara Bank will declare its results today and then people will be keeping an eye on Bank of Baroda, Punjab National Bank, State Bank of India (SBI), Bank of India. I don't think they will really be cheering the market. So, Bank Nifty could correct to about sub 12000.
I am keeping my positive stance on IT stocks from here on because some shorts shorts seem to be building up in the system and that will be seen as positive. However, I have an overall negative stance and I am keeping a range of 5650-6000 for whole of May series because May series this time is of five weeks. So, that too will go against the trend or may be help the negative stance build up for a longer time with a range of 5650 to 6000.
Q: How would you approach Marico now after the disappointment that they reported in earnings this quarter?
A: I am keeping a cautious stance on Marico because I don't think they have really pleased the market. Their results have been subdued. People are shifting their focus more on Hindustan Unilever and the stocks that will come in focus could be Dabur. Infact, I am not too much disappointed with Godrej Consumer so my positive stance will be more on Godrej Consumer followed by Dabur and then Marico. HUL seems to have peaked out and I don't see much downside as well as much upside happening. So, HUL will probably become a dull and boring stock for next couple of weeks point of view.