Experts bullish on market, say Nifty may hit 6,000 soon

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Experts bullish on market, say Nifty may hit 6,000 soon

Indices were under pressure after Reliance Industries' disappointing fourth quarter numbers came in. Nonetheless, Maruti Suzuki gained nearly 2% after posting better-than-expected fourth quarter numbers. Experts feel that the market can take this mild pressure while moving up as a positive surprise could be waiting on the upside.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Nifty ends flat; RIL, Axis Bank plunge, SBI, Sterlite surge Will TCS, RIL, Maruti drag market? First Global answers Will Nifty cross 6000 levels this week? Udayan says likely Commodity inflation a higher concern for US, Indian markets Experts feel banking sector to boost market rally further Reliance BSE | NSE 30/05/12 Are Mutual Funds betting on Reliance? Other Stocks in this news Maruti Suzuki India | Sterlite Industries (India) | Hindalco Industries | Bharti Telecom |

Domestic market witnessed a narrow trade and ended on flat note on the first day of the week due to lack of buying momentum. It seemed like the market was in a consolidation mode.

Indices were under pressure after Reliance Industries ' disappointing fourth quarter numbers came in, the stock lost nearly 3%.  Nonetheless, Maruti Suzuki gained nearly 2% after posting better-than-expected fourth quarter numbers. Experts feel that the market can take this mild pressure while moving up as a positive surprise could be waiting on the upside.

Mehraboon Irani, Principal and Head of Private Client Group Business at Nirmal Bang Securities, thinks that the momentum right now is in favour of the markets and banking sector will continue to lead the rally at least in the short run. However, from the long term investment point of view, he would prefer to wait for a correction in most banking stocks.

"If interest rates go up then I think the earnings will start coming down as there will be some pressure on the the Net Interest Margins (NIMs) of the banks. But more importantly, the big query is decision making on credit growth, which is going to remain at the same speed for what we have seen in the recent past," added Irani.

There were concerns that the recent updates in the 2G spectrum case may affect the market adversely. "Honestly, I have been negative on the telecom space for more than two years due to the scams. And I have gone to the extent to say that Indian telecom story is over. However, at the present valuations, Bharti would be a great stock to buy from a very long-term angle."

"If I was an institutional investor, I would definitely look at this space and Bharti would be the top pick, but I think not many of us over here right now are ready to look at the markets even from the next 3-4-5 months' angle," said Irani.

However, Prakash Diwan, head of Institutional Business at Networth Stock Broking said that the market had already factored in the impact of the 2G case and new updates have hardly impacted the trade. In fact, Diwan was more impressed with the numbers posted by Sterlite Industries .

He said, "Sterlite has shown the fact that commodities could possibly be a difficult area to kind of forecast in terms of earnings growth specifically for companies with such complex level of operation. We have seen Hindalco do a little bit okay but Sterlite numbers have distinctly taken people by surprise."

In the view of Rahul Mohindar form viratechindia.com, there would be reasonably good price action on the upside in sectors like banking, cement and some interesting midcap players may come in.

He said, "I am still pretty bullish on the market with the short-term perspective. Earnings are still good and we are above the critical level of 5830 and the Nifty may hit 6,000 over the next few days. On the downside, for short-term traders, I would keep a stop loss at about 5780 and maintain long positions."

As far as earnings season is concerned, Monindar feels that there will be more negative surprises than positive surprises as the season goes, however, there have been some pleasant surprise too. "Good companies like FAG India have offered investment opportunities. However, especially in terms of the frontline stocks, the results are already into the prices," he added.

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