Experts see mkts at new highs post consolidation

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Nifty closes below 5,000; realty dips 4%, sugar stks crash Mkt to pause for 1 wk but to hit 5400 by yr-end:Quantum Sec Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

After consolidating for the last few days, the markets traded weak today. So, is this weakness a harbinger of a further correction or a minor blip from a heady rally in the markets?

 

Hemen Kapadia of chartpundit.com thinks a correction is needed and long overdue in markets. Ambareesh Baliga of Karvy Stock Broking too feels the markets could correct now. He says the Nifty should move more towards 4700-4500 mark over the next couple of weeks, possibly till the end of December. "The markets will not cross 5,100-5,180.

 

But, Daryl Guppy, Founder and Director, guppytraders.com, says this is a sideways consolidation in terms of a trend correction. He sees 5,500 as the next target on the Nifty. "It is trading in a small consolidation band between 4,700 and 5,100. A breakout above 5,100 gives us an upside target of around 5,500. But if it doesn't take out 5,100, the retracement target is around 4,700."

 

Satish Betadpur, CFA, Global Research Director, Independent International Investment Research Plc, expects some more consolidation in markets. "It's not a very violent downturn. We have had a very nice upmove and a little bit of consolidation at this point is to be expected. If there is some kind of weakness, it will be a shallow correction, at most a 5% downside, before the market picks up."

 

Sanjay Dutt of Quantum Securities too sees no reason to fear. He sees the Nifty making a new 52- week high by the end of this year. "We are pausing right now. This may last for a day or two, or maximum for a week or so. We will make a new 52-week high this calendar year or by the first fortnight of January, and probably head up to 5,300-5,400." He also does not see the Nifty dipping below 4,500 as fundamentals in India do not justify trading below a 13-14 times multiple.

 

Sanjay Sinha, CEO, DBS Cholamandalam AMC, has a different take on the current happenings in the market. He says markets are seeing a relief rally. "This relief has come from the fact that the tightening cycle that was supposed to be started by all central bakers worldwide has got postponed by a couple of quarters. In the first expectation that the tightening would begin, we saw how global equity markets tanked in October and we tanked along with them." He added that if this goes on for a short-time in global markets, then local sentiments will be strong.