Real-time Stock quotes, portfolio, LIVE TV and more.
Sep 26, 2012, 08.23 AM IST
Sudarshan Sukhani of s2analytics.com provides to CNBC-TV18 an estimate of the level above which the index needs to close to convince investors to initiate fresh long positions on the Nifty. Anand Tandon, CEO, JRG Securities adds that the government needs to implement reforms for the domestic sector for substantial improvement in the economy.
Sudarshan Sukhani of s2analytics.com provides to CNBC-TV18 an estimate of the level above which the index needs to close to convince investors to initiate fresh long positions on the Nifty.
"My estimate is at 5,720. My point is that if the Nifty closes at 5,719, that would be as good as 5,720. In that level, if the Nifty goes up to close above, I would say that the two-day move that was full of choppiness, was a minor consolidation and the Nifty is well set for more gains ahead. So it is not very far from where we are now. It is just that in times of choppiness, even 40 points become a very difficult road to traverse. But if it does so, it would be a very bullish sign."
Meanwhile Anand Tandon, CEO, JRG Securities adds that the government needs to implement reforms for the domestic sector for any substantial improvement in the economy.
With the earnings season round the corner, Tandon estimates there will not be any widespread earning-downgrades and adds that the impact of USL 's stake-sale to Diageo will be evident only in the long run. Regarding the auto sector, he favours the lower-value two- and four-wheeler segments.
Below is an edited transcript of Anand Tandon's analysis on CNBC-TV18.
Q: What do you make of the debt-restructuring of the state electricity boards (SEBs)? And in terms of stocks, do you think the event has played out or is there more to go in terms of an upside?
A: I think that this probably the first level of reforms which allow the SEBs some breathing space. The government still needs to find a permanent solution which entails recovery of charges from all users.
Otherwise, to an extent, it should bode well for power-sector stocks, will certainly help generation companies and companies supplying equipment to the power-generation companies. Overall, it's definitely a step in the right direction at least for sometime.
By and large the move was anticipated that and to an extent, the market has already factored it in. But since a decision like this takes a long time to play out, I think that it maybe worthwhile to hold on to many of the stocks in the portfolio.
Q: What's the call on the market so far? After coming all the way to the 5,700 on the back of domestic reform, what is the way forward?
A: I think we have reached a level where I estimated the market would end up closer to the end of the year. Now, what needs to considered is substantial reform, not the superficial kind which we have seen so far, to make the market move any further from here. So, I would think that right now the market is probably near the top of the range.
May 20 2013, 15:05
- in MARKET OUTLOOK
May 20 2013, 12:21
- in Commodities