Sep 28, 2012, 09.12 AM IST

Mkt holds upside bias; Bet on USL, mid-tier IT cos: Experts

Sudarshan Sukhani of s2analystics.com advises investors on CNBC-TV18 at the start of a new series that the market bias is still on the upside. Prakash Diwan of Prakash Diwan’s Wealth Circle adds that Mallya plans to boost United Spirits and higlights that mid-tier IT stocks show promise.

Prakash Diwan, Chief Portfolio Strategist

Expertise : Equity - Fundamental

More about the Expert...

Closing Bell at 02:30 pm

Share . Email . Print . A+

Sudarshan Sukhani of s2analystics.com explains to CNBC0-TV18 his advice to investors at the start of a new series. "I think the market bias is still on the upside. My estimated levels were 5,650 for the Nifty and a close at that level is imminent. So, tomorrow if the markets actually slide below that then there will be no buying. We will wait patiently for this slide or correction to end. If the US markets are up, we could open on a cheerful note tomorrow morning."

Meanwhile, Prakash Diwan of Prakash Diwan's Wealth Circle adds that Mallya plans could be to infuse liquidity into United Spirits and get it independently re-rated which would boost the company and the stock. Diwan highlights that mid-tier IT stocks show promise.

Below is an edited transcript of Prakash Diwan's analysis on CNBC-TV18.

Q: What is your sense on the market which seem to be consolidating for the last few days?

A: The markets have very clearly taken a breather of sorts. Global cues have also lost a bit of that impactful news. As the October series begins, the September-end results will be the next major cue for markets to take some sort of a direction.

It needs to be understood that while policy and reforms from the government are driving markets up, stock-specific activity will also be decided on the expectations on results. The earnings season probably in October will probably set the path forward as far as the markets go.

Q: The stars in the last couple of days have been from the entire UB Group. What is do you advise investors to do with the United Spirits stock and the kind of impact it would have on some of the other companies of the group like Kingfisher Airlines and their stock prices?

A: The first benefit for the companies of the UB Group, particularly United Spirits and UB Holdings which have been carrying the burden of the Kingfisher debt in their books, is that they will be independently rated while Kingfisher is sorted out. Vijay Mallya is confident of coming up with some sort of a solution either through the meet on restructuring with his bankers or through the deal with Diageo.