Moneycontrol » News » Markets » Expert & FII Outlook

Mkts won't offer much over next 3-6 mths: ICICI Direct

Published on Wed, Aug 20, 2008 at 15:15 | Source : CNBC-TV18

Updated at Wed, Aug 20, 2008 at 16:31

4417 Investors following Visa Steel. Share this News with them.

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show »

ALSO READ

Nifty

BSE | NSE 01/06/12

Are Mutual Funds betting on Nifty?

Other Stocks in this news

Pankaj Pandey , Head-Research, ICICI Direct feels that going forward, the current kind of a rally could see a pullback. "I do not think that one should make out too much from it. We do not see that markets are going to deliver too much to the investors over a period of three-six months," he said.

Excerpts from CNBC-TV18's exclusive interview with Pankaj Pandey:

Q: Would you say that in the current rally and the profit taking we saw from the 4,620 levels, the consolidation we have seen around that 4,320 levels is now fairly well proven and the market could see some good days, some run up in the next few days?

A: I think over the past five days, the Sensex had lost about 6% in value. Some kind of bounce back was expected today but I think overall from a 12,600 to 17,000 levels, the kind of fall we have seen about 50-60% retracement technically was expected in the markets and that is what we have seen to 15,700 levels.

Q: Today's trade seems like an extremely hollow move if you were to look at the volume picture, which is completely drying up day in and day out - just in today's trading session 20% below the average day's volumes as well, what is the sense of the FII participation drying up that you get?

A: If I have to divide this into two parts, one is domestic-cues wise, I think definitely there is a bit of an improvement. But if we see sops like cash given to the fertilizer sector, I would be more happy if the government would have taken steps to boost the revenue. Going forward, I think this kind of a rally that we have seen, it could be a bit of a pullback rally and I do not think that one should make out too much from it. We do not see that markets are going to deliver too much to the investors over a period of three-six months.

Q: One has seen some reassuring improvement of the breadth of the market, we are seeing greater participation of midcap stocks coming in, the fertilizer stocks, infrastructure stocks, sugar stocks it seems to be broadening on a sustained basis, do you think that it is time now to look for bargains in the midcap space rather than in heavyweights?

A: I think rather than midcaps or largecaps, it will be largely stock specific be it metals also, we have been recommending some stocks like Visa Steel , Adhunik Metaliks , Usha Martin . On a largecap side, we have been recommending NTPC , Satyam and on pharma side we have been recommending some largecaps like Glenmark . So I do not think we are focusing in terms of largecaps or midcaps, it is more of a stock specific and I think markets like these will continue to throw opportunities for stock picking.

Disclosures:

It is safe to assume that my clients & I may have an investment interest in the stocks/sectors discussed.