Nifty may hit 5800 on decisive break above 5200: Guppy

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Karvy Stock Broking's top sector/stock picks post rate hike Markets will reverse only if Nifty tests 4675: Atul Suri 10-15% mkt rise in a month not good for India: Blackstone ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

The Indian markets seemed unperturbed by the Reserve Bank of India's unexpected move to hike key rates-the bourses managed to recoup the losses made during early trade as an effect of the knee-jerk reaction to the RBI's move.

The Nifty has support at 4,600, said Daryl Guppy, Founder and Director of Guppytraders.com. According to Guppy a move above 5,200 gives Nifty upside target of around 5,800.

Commenting stock specific, Guppy said ICICI Bank looks the best amongst the banking lot. "The upside target for the stock is at Rs 1,060 per share."

On the global footing, Guppy expects some pullback in Dow and S&P 500. "The Dow is expected to trade in the range of 10,000-10,700. Also, I expect the dollar index to come down to 76-77."

Here is a verbatim transcript of the exclusive interview with Daryl Guppy on CNBC-TV18. Also watch the accompanying video.

Q: How are the global equity market technical's looking-for example the Dow and the S&P?

A: The Dow and the S&P are still moving in a sideways trading band. But I suspect what we see is a pullback from the upper level of that resistance because of the healthcare bill that's been just announced a few hours ago. So we are looking for a reaction against that news at this stage. But we are unlikely to see a move outside this broad trading band with Dow between 10,000 and 10,700.

Q: Some technical analysts have pointed out that many Asian markets, including China and Hong Kong look quite weak in that context?

A: If you are looking at the China market what we are looking is long-term equilateral triangle. There is intermediate resistance level around 3,100. We need to have China market bounce off about 2,900, which it is doing, right through 3,100. Once that happens we start to break that equilateral triangle and we look at upside breakout. Equilateral triangles are pattern of indecision but there is some bullishness in Shanghai market.

We are looking at Hang Seng, it has a fast momentum rise followed by cup development where the markets come back in a controlled fashion and is now rebounding. We are looking at an upside target for Hang Seng market around 23,000.

We have got upside break up potentials for both Hang Seng and Shanghia market.