Mkt promising to go up to 11,400 levels: Deven Choksey

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Deven Choksey of KR Choksey Securities says that the market is promising to go up to 11,400 levels. But he thinks "11,000 plus and 11,400 are the two levels at which the market would struggle."

However, he discounts the possibility of any huge fall in the market. He says that the possibility of the markets moving up is greater than it's coming down.

He also sounds positive about the midcaps, as he believes this time, they won't see the same churning as they had seen the last time, when the market tanked.

Excerpts from CNBC-TV18's exclusive interview with Deven Choksey:

Q: 11,000 after a long time, do you think we can hold this?

A: After a long time, the market has come out of this particular resistance level. I think it is promising to go up to 11,400 levels. But at this point of time, 11,000 plus and 11,400 are the two levels at which the market would struggle and probably will try to make its way out for going upside.

Q: What about midcaps, are you seeing an appetite amongst your clients among those beaten down midcaps once again?

A: We analyse 270-280 companies. Out of that 240 companies have given about 32% growth over last year. In our reading, we have been recommending some of these midcap companies, which have been battered for no other reason except those weak sentiments. We believe that the solid companies would have buyers in the market. Definitely, portfolio building is taking place.

Q: How has participation been today especially from your retail clients?

A: It is okay. I wouldn't say that is something very great. We haven't seen that great period, which we had seen three and a half months back. Yet, there is a gradual revival in the confidence.

People have been asking for selective good ideas and they have been investing in the market. To that extent, it is a kind of a happy sentiment, which is prevailing at this point of time. We believe that the stability factor would help it grow further.

Q: What have you recommended from banking to them?

A: For us, apart from State Bank of India , IDBI has always been a favourite company. More importantly IDBI Bank today is available below the book value.

At the same time, the possibility of unlocking of those valuations, the investment, which they have been nurturing for quite sometime, this is some kind of a trigger for the banks in the coming period. We have been asking our customers to build these two stocks in the portfolio.

Q: What have you told your clients on GE Shipping because of this de-merger being pulled off?

A: We didn't ask them to get into any kind of action honestly. But what we have been telling them is that when this demerger has been called off, there has to be certain other arrangements happening with the company.

The company is trying to work out some arrangement on that front. Possibly the valuation of a combined company is not looking bad, given that the possibility. We haven't given any specific call on that. But at the same time, we believe that this is a possibility, which, going forward is going to be positive for the company.

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