Jan 06, 2006, 02.52 PM | Source: CNBC-TV18

10000-10200 levels possible before Budget: Baliga

Ambareesh Baliga of Karvy Stock Broking says that Sensex could go up to 10,000-10,200 levels possibly by end of January or middle of February; before the Budget.

On Sensex reaching 10,000-10,200 levels.

Ambareesh Baliga

Karvy Stock Broking

Ambareesh Baliga of Karvy Stock Broking says that the pause witnessed by the market yesterday was needed. It is good to see the market consolidating at the present levels, he adds.

Baliga feels that Sensex could go up to 10,000-10,200 levels possibly by end of January or middle of February; before the Budget.

Excerpts from an exclusive CNBC-TV18 interview with Ambareesh Baliga:

On markets: This pause was needed because one cannot have markets running up 100-150 points every day. It would have become a bit too dangerous for the markets. Therefore, it is good that market is consolidating at these levels. It is on track and should reach the levels that we have been talking about.

On whether the market will correct once before taking the journey to 10,000 levels:

 It is possible. If that happens, then it will be good for markets because possibly 100-150 points correction is nothing much at this juncture. One can only call it a consolidation. We are quite clear that markets will surely go to 10,000-10,200 levels, possibly by end of January or middle of February; surely before the Budget.

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On banking space:

Basically, rotation is happening in the banking space. We have been talking earlier also, that in 2006 there would be discounting between private sector banks and PSUs because most of the PSUs are moving towards the private sector space. Therefore, one will see narrowing of PEs between these two spaces.

On PVR and Ramsarup:

PVR is a bit too expensive. I do not believe that retail investors can be buying with a two to three year timeframe, because anyone buying at this point and at the current level, needs to have a long-term view. But then, it is expensive at this juncture.

On Satyam:

It could show Rs 800. But for the time being, it is done because fundamentally speaking, it is already overvalued. But the momentum could take it up for some more time. But I will not buy Satyam at this juncture. If I have Satyam, possibly then I will sell it and buy Infosys .

On whether there will be appetite for follow on offerings in the banking space:

There should be, but I cannot give stock specific recommendations because in Bank of Baroda , we are the lead managers. I think that there is enough appetite for the fresh paper in the market, right now.

On list of public sector banks that he is pushing to his clients:

Other than State Bank of India , we are pushing PNB , Dena Bank and Canara Bank . These are the three stocks, which we are pushing in PSU banking sector.


I think that there is still some steam left in ITC and Hindustan Lever. Infact, in Lever, we see a margin expansion happening over the next couple of quarters. We have a price target of between Rs 240 and Rs 260 for Lever. As far as ITC is concerned, I think that Rs 180-Rs 190 should be achievable.

On midcap technologies:

We were positive on MphasiS BFL , which has performed in the last couple of days. After under performing for the last three-four months, it has spurted in the last couple of days. Therefore, there is nothing else that we are tracking in the midcap technology sector right now.

On Gail:

I would not take credit for that because we used to like Gail till it was around Rs 240-Rs 250 levels. Therefore, for this move beyond that level, I cannot take credit. But then, we had a technical "buy" on this stock and we are looking at a price of around Rs 295-Rs 300. But this is purely a technical call because we feel that fundamentally, it is over priced at this juncture.

On Reliance:

It may cool off a bit. But closer to January 18; one should see a price level between Rs 925 and Rs 950.

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