SENSEX NIFTY
Aug 02, 2012, 02.51 PM IST | Source: CNBC-TV18

Darashaw sees Nifty in 5000-5300 range, suggests picks

The Indian market has been rangebound over the last couple of sessions. In an interview to CNBC-TV18, Regan F Homavazir, associate VP-technical research, Darashaw says, he sees the Nifty in 5,000-5,300 range.

The Indian market has been rangebound over the last couple of sessions. In an interview to CNBC-TV18, Regan F Homavazir, associate VP-technical research, Darashaw says, he sees the Nifty in 5,000-5,300 range. "Should the market move from 5,300 levels then we can look at some immediate upsides of about 400 Nifty points," he adds.

In the banking sector, he is bullish on HDFC Bank , Kotak Mahindra Bank and ICICI Bank . "HDFC Bank continues to be our top pick in the banking space," he adds.

In the FMCG space, he likes Godrej Consumer Products . "Godrej Consumer is a very bullish stock. It could be bought even at the current market price," he asserts.

According to him, Hindustan Zinc and Jindal Steel (JSPL) look very attractive at current price point.

He is also bullish on Zee Entertainment . "The stock could be embarking on very long-term upmoves. We believe that the target of Rs 300 and in excess of that is possible," he adds.

Also read: Angel Broking extremely bullish on mkt over next 3 years

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee.

Q: Is it bullish or bearish in the near-term?

A: Should the market move from 5,300 levels then we can look at some immediate upsides of about 400 Nifty points. However, looking at it from a much longer term perspective, there are two sides of the story. The Nifty has changed certain parameters that are suggestive of the Nifty being more neutral than bearish. It also means that the Nifty will have to hold the 5,000 level for that outlook to remain neutral. Should it start trading below 5,000, the Nifty will again start to have bearish connotations.

Q: So, right now, you see the range between 5,000 and 5,300. Only if one of the two ends is taken out, will you have a more decisive medium-term view?

A: Correct, that would be the case.

Q: What are you seeing on the chart of the Bank Nifty at this point?

A: The Bank Nifty, just like the Nifty, is at a resistance. However, stocks are behaving quite differently. For example, last time, when we spoke of switching SBI into HDFC Bank, that has turned out to be very profitable. Now, HDFC Bank continues to be our top pick in the banking space.

As far as the second and the third banks are concerned, we could be looking at Kotak Mahindra Bank at this price and so should you be looking at ICICI. ICICI above Rs 1,000 looks, with a longer term perspective, very bullish. The targets could be as good as Rs 1,500.

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