Steady session: Experts tell you which stocks to pick now

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Steady session: Experts tell you which stocks to pick now

The Nifty swung around in a narrow range before closing flat - comfortably above the 4,850 level. The Sensex too ended very flat closing at 16,176 points. The broader markets were in a league of their own, with the midcap index gaining over 1%.

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Moneycontrol Bureau

It's been a day spent consolidating Tuesday's blockbuster gains . Subdued global cues too dampened sentiment. The Nifty swung around in a narrow range before closing flat - comfortably above the 4,850 level. The Sensex too ended very flat closing at 16,176 points. The broader markets were in a league of their own, with the midcap index gaining over 1%.

The market is buzzing with activity this month. With the final go-ahead of FDI in single-brand, expectation of a pause in rate hike and third quarter earnings season this month, the market is flying high. Investor sentiment seems to have regained confidence hoping for some policy action.

The market is, however, not very excited about Infosys third quarter results expected tomorrow. The company is expected to do well only due to rupee depreciation but macro environment remains edgy. It is likely to report a profit after tax of Rs 2,322 crore in the third quarter of FY12, a growth of 21.8% as compared to Rs 1,906 crore in the previous quarter, according to CNBC-TV18 estimates.

So, what are the best bets this season?

Deven Choksey, MD, KR Choksey Shares and Securities is betting on infrastructure, private sector banks and selected mid cap companies. He likes Mundra Port , Sterlite Technologies and Praj Industries . Among the private banking space IndusInd , Axis and ICICI Bank are his favourites. "One could probably buy into some of these stocks on any corrections. So, more than sectors, I would concentrate on selective stocks where we have larger amount of confidence about the business and going forward the performance of the company," he suggested.

Choksey is positive on the market and is expecting the market to go up to 4900-4920 and then correct. During the earnings season, the market is likely to be largely in the range between 4680-5050, he added.

However, considering the larger picture of a soft interest rate, he is betting on  heavyweight banks like SBI , PNB , BOB .

Nitin Raheja, CIO, Rada Advisors too agrees that the Nifty may go up to 4,950-5,000.

Retail picks

After the hue and cry, government's final decision to approve FDI in single-brand retail has got the sector excited.

Retail companies like Pantaloon Retail , Koutons , Shoppers Stop and Vishal Retail rallied 4-9% in today's trade.

Experts are also expecting a re-rating od retail brand stocks. Nevertheless, Choksey feels that the stocks have gone up more because of the positive news announcement which may cool down over a period of time.

Raheja too agrees that the retail stocks will lose steam very soon. Raheja warns that balancesheet of most of these companies are not right. "There are a few of them which are very niche who are doing very well in that sense. But then valuations are again not very cheap in some of them," Raheja explained.

Raheja prefers Lovable Lingerie maybe at lower levels.

Nasrin Sultana

nasrin.sultana@network18online.com