May 29, 2013 07:48 PM IST | Source: CNBC-TV18

Exit Jaypee Infratech around Rs 40, says Agarwal

Dynamix Research & Capital Management‘s CEO Sanjeev Agarwal advised exiting Jaypee Infratech, if the stock hits Rs 40.

Sanjeev Agarwal, CEO of Dynamix Research & Capital Management told CNBC-TV18, “Currently Jaypee Infratech is not looking very good. If it gets around Rs 40 it is exit time, but if we see our study on the Nifty or the markets in a longer term, I expect that the market in this year is going to go down quite severely in the later half. Right now we have seen this one bout of volatility which is happening in the last few days.”

He further added, “Dollar has already given a very strong breakout, only few large caps are rising and the midcaps are not catching up. So the scenario doesn’t look good in the short-term. However in the long term post 2016 and 2017 we see that there is going to be a big secular bull market, the next leg of the bull market will start. What ended in 2008 was the first leg and this corrective leg will finish somewhere in 2016. 2017 onwards we will see a very strong uptrend in Indian equities and world equities also.”

“So if investor has taken Japyee Infratech for 10 years, if he/she is ready to ride out all the roughs in between, he/she is going to get a good price. However, generally it has been seen the strong performer of the last rise is not very good performer in the next rise. So I don't think infrastructure is going to perform in the next rally,” Agarwal said.

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