Mkt correcting; see support for Nifty at 5600: Experts

Anil Manghnani of eqwise.in believes the 1 percent slide in the market today is more of a routine after it saw a rally of 600 points last week. According to him, a little bit of a pause is good. Since the short term support of 5700 has been taken out, he believes the Nifty could correct to 5585.

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As far as the rupee in concerned, Manghnani said, "Around 51.90-52 the dollar had good support. It may be overshot on the downside where it went to about 51.40 but, it is good to see that it is bouncing. I think if the rupee comes back to 53.50-54, it allows the market to correct a little bit and then again money re-enters. But, all that takes time. Remember it has been a one month or one way up move. You got to give it some time to pull back a little bit."

Market analyst, Ambareesh Baliga is of the view that although, the market has seen a good run, it is not yet the top for the market. He believes, the current trade is more of a correction and he does not expect the Nifty to go below 5690-5700. Baliga feels the next major support for Nifty is 5600-5620 and he hopes to see levels of 6000 by Diwali.

After the latest government decision to allow telecom companies to pay a one time fee for airwaves during the upcoming auction, Baliga asks traders to watch out for telecom stocks like Bharti and Reliance .

Here is the edited transcript of the interview on CNBC-TV18.

Q: You have heard a lot about the telecom space now. What is your view with regards to what the EGoM has come out with and how do you think you would play something like a Bharti and Idea ?

A: This clarification has come in about charges being prospective. I think that was the clear trigger for these stocks today. I have been quiet positive on Bharti all through, especially when it had fallen to levels below Rs 260 closer to Rs 240-245. I have been saying it is a buy, so that still continues. My feel is that we should see levels of about Rs 300-320 for this stock once the spectrum auction is over.

Q: Which are the incumbents who may bathe in this particular auction? The key question is do these companies really have the money to bathe? What happens to their balance sheets and what happens to the industry in terms of tariffs etc.?

A: I think one player which needs to be watched out for is Reliance. In case they come in, the total fabric of the telecom industry could change and especially the sort of bidding which could happen. I think that is the one to be watched out for, because for the rest of them I don't think there will be too aggressive a bidding this time.