Mkts to remain positive for next few sessions: Choksey

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Deven Choksey of KR Choksey Securities expects the markets to remain positive for the next few trading sessions. His first target for the Sensex is 12,600 plus levels.

 

He also expects a good amount of action happening in the midcap space in the coming months. He discusses the expected market behaviour along with his picks.

 

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

 

Q: Did you expect this kind of positivity to hold through the day?

 

A: Ideally, I am expecting the market to stay positive, possibly not for the day but maybe for next few sessions. The fundamental reasons are very well known, but most importantly, in this particular rally the strength is more on two counts; one of them is the liquidity, which is driving up the stock prices at this point of time. We have also seen a good amount of short covering taking place into the Nifty futures; people who had gone short, the funds have covered Nifty futures in a big way.

 

So to a great extent rollover is not taking place, but the covering has taken place, which makes sense as far as the market is concerned. This is because it is fundamentally very positive, even the advance tax numbers are positive.

 

So all put together, we had the particular view for quite sometime now that the commodity withdrawal of funds from commodity would find favour in the equity. And to that extent, the liquidity will come back to equity.

 

So obviously, I think 12,600 plus level is the first target that we are expecting for the market and maybe we are going to see the trading range kept at around 12,100 levels, this is a 500 points bend in which the market is likely to perform as of now.

 

Q: Any preliminary thoughts on the 3G spectrum, and the sort of price that listed companies will pay on base element and then in terms of auction?

 

A: According to me, the auction part is going to be more beneficiary to volume players like Bharti and Reliance , the number one and two companies in the market. It is clearly going to be the game of fetching this particular spectrum in their favour because they would probably be in a position to get larger number of subscribers equated to the price that they are going to be paying.

 

It is difficult to take a call at this point of time whether it would be the CDMA players or the GSM players, who would get the maximum benefit, but as of now, it looks like that the auction price mechanism should possibly work favourably for the larger players. 

 

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