The Indian market is on a very strong wicket now. In an interview to CNBC-TV18, Anu Jain, IIFL Private Wealth Management says the Nifty may move towards 6,050-6,100, probably post that even 6,300 in the next three-four months. "If you are looking at the long-term charts, it is definitely a breakout," she adds.
Multibaggers: Aashish Tater's 2 picks for handsome returns
Below is the edited transcript of her interview with CNBC-TV18's Latha Venkatesh and Sonia Shenoy.
Q: How is the Nifty poised in the near-term? Do you think it is good to go for more?
A: If you are looking at the long-term charts, it is definitely a breakout. It is poised towards 6,050-6,100, probably post that even 6,300 in the next three-four months. If you are looking at the absolute near-term, today and the next few days, on Friday itself the candlestick patterns were that of profit taking and a saturation of the current trend. So, you could see about two-three percent going off on the Nifty as a very normal technical process of correcting, after a huge move of about six-seven percent.
I would think that would be an opportunity to get into the right stocks and probably hold on. So, whether you are looking at a trading bias where you should probably look at that dip to buy or whether you are looking at an investment perspective where you are looking to get into the markets, I think both would be solved. It would need a major news flow either ways to break the market either down below that or above that. So, I think it is in a consolidating phase for another 15-20 days giving an opportunity for the market to take a breath and people to catch some stocks.
Q: There were a lot of long positions getting added in some of the high-beta names on Monday, the likes of JP Associates, Reliance Infrastructure etc. From that lot, where do you see more follow through on the upside?
A: Despite the move, the infrastructure pack has not really gone back to what it was even in January. Many of them are spreading below that. So, I think there is still scope to move up. JP can move up. But, as of now, I would probably wait for the market to open, consolidate for half an hour before really taking a call on whether it is JP or Reliance Infra.
If the market gives up 2.5-3 percent, these could give up more than that. But, yes, on the dip, these look good. JP is looking good now for about Rs 90-93, but would wait for dips, for consolidation. It could go back to about Rs 74-75. I would look at those points to enter into it. Yes, I know that the sweeps are pretty large, but the market can do that once more before you make that final leap forward to the previous highs.
Q: What about Chambal Fertilisers?
A: The whole pack is looking interesting. My view is that the market can consolidate. So, I have given a two way call on it that either you buy it on dips, when it corrects down to Rs 72. If it crosses the Rs 75.5-76 zone then there is no need to wait because then it is catching fresh momentum.
Q: What about rupee? Are you expecting it to go towards 52?
A: Yes, I am expecting it to go towards 51.50 and then reverse from there, come back to 53.50-53.75.
A: We probably like Tata Motors. So, on a dip of about 2 percent from here, I think Tata Motors on a long-term chart has now consolidated. It has corrected from the Rs 300 odd levels, back to about Rs 240. Now, it is in the Rs 270-280 zone.
If it can hold onto those Rs 264 levels, I would probably look for getting into Tata Motors for a slightly more longer period. So, I think that makes a better bet than the two wheelers. Hero Honda has some short, probably can correct about two-three percent. Bajaj would be a better chart between Hero Honda and Bajaj.