Expect Nifty to move to 5350-5400 post budget: Way2Wealth

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Expect Nifty to move to 5350-5400 post budget: Way2Wealth

In an interview to CNBC-TV18, Baliga said, "The expectations are decently low as far as budget is concerned. But, post budget, post political realignment, which we are looking forward to that should be a trigger for the markets to go to the levels of 5,350-5,400."

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Ambareesh Baliga, chief operating officer, Way2Wealth expects to see some profit booking and a small correction once Nifty touches 5,050-5,100 levels. He expects to see levels of 5,350-5,400 on the Nifty post budget .

In an interview to CNBC-TV18, Baliga said, "The expectations are decently low as far as budget is concerned. But, post budget, post political realignment, which we are looking forward to that should be a trigger for the markets to go to the levels of 5,350-5,400."

Below is the edited transcript of Baliga's interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying video.

Q: Looks like we will see 5,000 today, what will you tell your clients to do after that?

A: No, in fact I have been saying that we should see levels of 5,050-5,100, at those levels there will be some profit booking and we could see a small correction. Whenever we see that, correction surely will be bought into, but it will not get sold into like what we have seen in the last couple of months. Sentiment is better, so over the longer term of next two-three months, we should see the market at least around 5,300-5,400.

Q: How soon do you expect that potential move to 5,300-5,400 happen, are you routing for pre budget rally?

A: May not be a pre budget rally, the expectations are decently low as far as budget is concerned. But post the budget, post the political realignment which we are looking forward to that should be the trigger for the markets to go to the levels of 5,350-5,400.

Q: Are you beginning to witness a lot of HNI or retail interest on some of these midcap stories, the way they have rallied 30-35%?

A: Absolutely. That is the difference which we have noticing between October to December and now that people wanted to stay out of the equity markets, but in the last couple of days you have seen a lot of interest coming back in the midcaps. Again that greed factor is what is playing out because you see returns of 30-40% in just about 10-15 days, people get interested in stocks. We are seeing a lot of interest in these midcaps.

Q: What are you telling your clients to do on Reliance now, what do you think the stock does next week post results and the buyback this weekend?

A: In case the results disappoint we do not see a major cut because of this buyback perhaps that will give the floor for the stock. In case the results disappoint and in case we see a small cut, people should buy into it.

Q: Any thoughts on these two capital goods stocks Voltas and Crompton Greaves because they got singled out for punishment yesterday?

A: One should be buying Crompton Greaves in this downtrend because most of the bad news is already priced in. With the sort of order flows they have, we should see the stock back at Rs 170-180 quite soon. Voltas for the time being should be ignored because the newsflow is still quite bad.

Q: Any thoughts on the public sector banks and whether anything is looking like a buy right now?

A; Not right now because we have seen decent sort of rally in quite a few of them, so I would surely wait for the results, wait for the monetary policy. Post that if we see a correction, in that correction one should look at buying.

Q: Do you expect any kind of reaction on the power sector because of the meeting and the newsflow which came from Delhi yesterday?

A: Yes, after such a long time we are hearing some positive noises from Delhi as far as power sector is concerned. We have seen under performance in the last two years, so at least going ahead, we should see some decent amount of uptrend in this sector.