Mkts may consolidate in next few sessions: Arihant Cap

Excerpts from Midcap Radar 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 ITC BSE | NSE 01/06/12 Are Mutual Funds betting on ITC? Other Stocks in this news Hindustan Unilever | ICICI Bank | State Bank of India | Reliance Industries | Indiabulls Securities | Tulsi Extrusions | GSS Infotech |

Arpit Agrawal , Head-Research, Arihant Cap Markets said the markets will be in consolidation, in a small range, for the next few trading sessions. He told CNBC-TV18 that a lot of negatives have been factored in the market and it may take positive direction for some time.

 

Excerpts from CNBC-TV18's exclusive interview with Arpit Agrawal:

 

Q: Do you think today is just a one off move and a sort of reaction to Asia and the global markets in particular? Can it really hold?

 

A: It is a difficult call right now. The market will be in consolidation, may be in a small range, for the next few trading sessions. The market would actually look at earnings to take the direction, going forward. But it is a difficult call right now whether the market would hold at these levels. But it looks to be consolidating and a lot of negatives have been factored in the market. So, we can probably see the market taking positive direction for some time.

 

Q: Would you look to buy into either ITC or HUL at these levels?

 

A: There are a lot of other sectors and stocks, which are actually available at better valuations. Although, FMCG is always a safer bet in falling markets, there are a lot of other attractive stocks.

 

Q: Which are these stocks and sectors?

 

A: Financial services like banking. Although inflation risk is already there, but ICICI Bank and SBI are stocks that have taken the brunt. A lot of negatives have already been factored in and one can look at accumulating these stocks at these levels.

 

Q: What is your call on the entire steel space? Are there any particular counters that you are bullish on because there is a sort of tug-of-war fundamentally between the industry players and the government?

 

A: That is the problem. Steel prices were one of the major concerns of the government. With inflation topping 7%, this uncertainty over price rise going forward and continuous pressure from government to actually avoid any price rise, that's a negative in the short-term. It is better to avoid steel right now.

 

Q: Have you taken a look at either Indiabulls Securities , Tulsi Extrusions or GSS America's performances over the last one-week or so?    

 

A: I don't track these stocks very closely. But I don't think there is much in these stocks.

 

Q: What about the oil and gas space?

 

A: That sector again looks defensive. Reliance has taken a good support at the near-term bottom. From here, Reliance is one stock that can actually lead the market going forward.

 

Disclosure:

As a broking house, we may have positions in stocks discussed and personally, I have positions in ICICI Bank and SBI.