SENSEX NIFTY
Mar 09, 2013, 03.18 PM IST | Source: CNBC-TV18

Current mkt rally may push Nifty to 6100: Amisha Vora

The current market rally is likely to continue and it will push Nifty to 6,100 going ahead, says Amisha Vora of Prabhudas Lilladher. "We are looking at a broad range, 5,600-5,700 on the downside and closer to 6,200 on the upside."

The current market rally is likely to continue and it will push Nifty  to 6,100 going ahead, says Amisha Vora of Prabhudas Lilladher. "We are looking at a broad range, 5,600-5,700 on the downside and closer to 6,200 on the upside."

L&T , IDFC and Tata Motors are her top picks. From the midcap space, she is betting on Petronet LNG and United Phosphorous .

Here is an edited transcript of the interview

Q: Do you think this pullback rally can extend itself into a more durable upmove, or was it just a trading rally that we saw last week?

A: No, I think that in the current circumstances, we are looking at a broad range, which is 5,600-5,700 on the downside and closer to 6,200 on the upside. So, we are somewhere in between. So, potentially this rally might sustain and take us up to 6,100.

Q: I just wanted to extend that point that you made about the range for this market perhaps extending itself to the 6,200 level. Next week, we have important macro data coming in like index of industrial production (IIP), inflation etc. Do you think any of it will be market moving, or will global market cues continue to determine our trend?

A: No, I think overall global market cues will make the final impression on our markets and flows. This is because apart from FII flows, the flows from other sources are totally constrained currently. That would remain the most important factor. However, beyond that yes, I would think that about IIP, I am not so hopeful.

The way planned expenditure has been cut during the Budget, I think January numbers will not be anything great. But I think inflation data will be little more critical to watch. If that starts soothing further, then the confidence in Reserve Bank of India (RBI) action will increase. So, I would say that data would be more important.

Q: We did see some genuine value buying in the markets last week in the heavyweight banking names, and oil and gas names as well. If you had to lap up a couple of stocks, which ones would they be?

A: We are looking at some of these stocks --like three stocks which we have added to our list of top picks are Larsen and Toubro (L&T), IDFC and Tata Motors. I am sure, last week, most of these had a slightly stronger run. But in a slightly medium-term perspective, we think that these stocks have come around to a valuation where risk-return looks pretty favourable.

Tata Motors, of course, is not riding on the domestic part, which is in pain both in terms of the commercial vehicle (CV) and car market. But we are largely bullish on the Jaguar-LandRover (JLR) part of their business, which is almost more than 90 percent in terms of topline and bottom line.

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READ MORE ON  Nifty, rally, market, IIP, inflation, RBI, global cues
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