Moneycontrol
Jun 16, 2017 10:16 PM IST | Source: CNBC-TV18

Market to see resistance on the upside, it is lacking leadership: Experts

One should expect volatility and resistance on the upside, said R Sreesankar of Prabhudas Lilladher.

The week was all about consolidation for the Indian equity markets. Ashwani Gujral of ashwanigujral.com believes there is no leadership in the market to take it above 9700. Neither was there short covering, where shorts were eager to cover. So unless one of these two things happen market will remain choppy and stocks will find only small rallies before they again start correcting.

The 30-share BSE Sensex was down 19.33 points at 31,056.40 and the 50-share NSE Nifty rose 10 points to 9,588.05.

“This is the first week where we haven't made new highs and there could couple of more weeks before new highs come in,” says Gujral.

R Sreesankar of Prabhudas Lilladher says market is not cheap at the current levels but liquidity inflows is keeping it up. However, it is not easy for it to move up sharply, so one should expect volatility and resistance on the upside.

Sector/stock specific, Sreesankar said from the midcap basket they have added Ramkrishna Forgings, Heidelberg Cement, Capital First to the top picks recently. From the banking space, they have added three banks to their top picks - Yes Bank, ICICI Bank and Capital First got added. Giving the rationale for selecting them, he says increase in NPAs that were seen over last 4-5 quarters, that incremental additions will slow down.

Market experts Mitessh Thakkar of mitesshthakkar.com, SP Tulsian of sptulsian.com and Deepak Shenoy of Capitalmind.in in the same interview shared their stock specific ideas.

For the entire discussion, watch video

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