Nifty ends below 5100 mark: Can it reclaim the level?

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Nifty ends below 5100 mark: Can it reclaim the level?

After witnessing wild swings all though the trading session on Thursday, the bourses recovered in-line with their European peers, but still closed with deep gashes. Experts are of the opinion that the volatility period will continue for a while, but will this help in getting back to 5100?

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After witnessing wild swings all though the trading session on Thursday, the bourses recovered in-line with their European peers, but still closed with deep gashes. In an intensely volatile session on the Dalal Street, the National stock Exchange's Nifty closed lower at 5,090, down 34 points, while the Bombay Stock Exchange's Sensex shut shop at 16,987, down by 100 points.

Will the Nifty once again test 5,100 in the near future?

To Amisha Vora, Joint Managing Director at Prabhudas Lilladher it looks like the market is putting up a fight. But, the volatility period, she says, will continue for a while. However, she adds, "We are ignoring a lot of positives including the telecom collection which will go to government, the foreign institutional investors (FII) fresh inflow into bond side. Also the way bond yields are softening and its result on the overall interest rate outlook is a booster for the market."

Technical Analyst Ashwani Gujral feels some sort of a pullback rally was due and now it is taking shape. "A lot of global indices are also reaching key supports. We probably did a retest of yesterday's low today and seem to have come back. Metals are kind of coming back. So it is probably a good trade to buy some calls on metals. We could retest 5,180-5,200 if global markets also resume some kind of a pullback but clearly the worst may not be over."

On Banking

"If one wants to bet on a slight market recovery banks would be ideally placed to play that because the falling bond yields have not yet been captured by the bank stocks and particularly stock like SBI or something," says Vora.

But for Phani Sekhar of Angel Broking, ICICI Bank seems to be a favorite at this point in time because of the strategic feed that Bank of Rajasthan may have but no specific inputs on the deal. Further commenting on his bets in the sector, he says, "At this point in time since growth is more or less in the bag, I would like to go for banks that are more attractively valued-a lot of small public sector banks look attractive and so do regional private sector banks like the Federal Bank or South Indian Bank . At the same time we have Vijaya Bank in the public sector banking space or Andhra Bank that also look good."

On Commodities

"If the commodity price trend is softening then other stocks like Maruti which has corrected substantially could also be one of the stocks to play with the positive side of the market where the underlying is slightly better rather than playing the commodity uptick which is so much linked with the euro dollar equation largely," says Vora.

On Suzlon Energy

Amisha Vora says, Suzlon Energy could be the stock of the year. However, she says, the fundamentals have yet to start unfolding positively. "We think this could be still the stock of the year with limited downside and very good upside."
 
On Mid-Day , Jagran deal

Sekhar doesn't think that the Mid-Day deal will immediately be material to Jagran's fortunes. However, he says, Mid-Day shareholders will gain a lot. "From Jagran's point of view, I don't think it's going to be material for the simple reason that there is immense competition in Mid-Day's original market of Mumbai and growing it there itself is a challenge. It's going to be difficult. It's advantageous for Mid-Day shareholders, neutral for Jagran."