Nifty may correct to 5000: Way2Wealth's Ambareesh Baliga

16853 Investors following India Cements. Share this News with them.

0

Like this story, share it with millions of investors on M3

Nifty may correct to 5000: Way2Wealth's Ambareesh Baliga

The Indian market has been volatile over the last couple of sessions. Ambareesh Baliga, COO, Way2Wealth says, the Nifty could correct closer to 5,000-5,050 or lower.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar 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 India Cements BSE | NSE 25/05/12 Are Mutual Funds betting on India Cements? Other Stocks in this news ACC | Bharti Airtel | JSW Steel | State Bank of India | Housing Development Finance Corporation | Axis Bank | Development Credit Bank | Voltas | Crompton Greaves |

The Indian market has been volatile over the last couple of sessions. Ambareesh Baliga, COO, Way2Wealth says, the Nifty could correct closer to 5,000-5,050 or lower. "We need to wait and see whether it consolidates in the 5,300-5,400 region or we see a correction to about 5,200-5,250," he adds.

According to him, there are lots of issues. "Greece is still a big issue. Budget is going to be another issue to be looked at. The biggest of all of them is elections, which are still quite uncertain, in UP," he adds.

Houseviews: Get brokerage advice on 4 stocks here!

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: What do you expect to see after the volatility of the last couple of days?

A: We need to wait and see whether it consolidates in the 5,300-5,400 region or we see a correction to about 5,200-5,250. We could see a deeper correction possibly closer to 5,000-5,050 or lower. For next couple of days, we need to see whether it slips below this range which I am talking about.

There are lots of issues. Greece is still a big issue which we still haven't really been factoring in. Budget is going to be another issue to be looked at. The biggest of all of them is elections, which are still quite uncertain, in UP.

Q: Assuming good news comes through globally, given the way liquidity has been moving, what would you say is the upside potential for the market?

A: In case we have some good news globally then I suppose the upside for the markets could be 5,600. Once we cross the hurdle of 5,400-5,450, we could see 5,600. But the question is whether we should be buying into this rally or whether we should be booking out to a certain extent. I would surely look at booking out.

Fundamentally, nothing much has changed in the last one to one-and-a-half months, except sentiment is better, atleast good noises are coming from Delhi. So, based on this, you really can't have a rally sustaining which will bring it to new highs. I think things have to change at the ground level. That will possibly happen post Budget, post elections. But again these two things are quite uncertain as to what the outcome could be.

It's better to wait and watch for a while. If the market was at 4,800 now possibly, I would have said it's a buy. But at these levels it's prudent to book out, atleast to a certain extent. I am not saying you sell and possibly go short, I don't think that's a time right now. But atleast book out to a certain extent, get into cash to about 10-15% on your portfolio.

Q: Cement stocks like India Cement and ACC have rallied some 20% in the last seven days. What do you expect to see from the numbers today?

A: Looking at the dispatch numbers, which were slightly better than what most of us were expecting, the numbers should be quite decent. But unless we start seeing that 10-11% growth in dispatches, which we use to see two-three years back, I think at these levels most of the cement stocks seem overvalued. This rally, which we have seen in the past few days in the cement stocks, should be utilised to book out atleast to a certain extent.