Nifty may fall to 5000-5100 in Sept, warns Baliga

Q: Bharti refuses to see any respite, it is now at Rs 240. Would you buy it now?

A: I was looking at buying between Rs 240-250 range. So, at the current level of Rs 242 I’ll buy some more. Technically speaking in case it breaks that Rs 240 mark, then possibly I’ll wait for Rs 220 levels to buy further.

This is surely from an investment angle. Looking at life beyond the next 6-8 months, from that point of view it makes a lot of sense buying at these levels.

Q: What is your view on Tech Mahindra ? It is gone up more than 25% in the last 3 months? On the back of this news, how do you think the stock will move?

A: No it will surely react. On the overall IT space I have been cautious for a while. Even at these levels one should be exiting both Tech Mahindra as well as Satyam. Although the results were good, but it has already played out. I don’t see too much of an upside from here. It is time to get out.

Q: Do you expect cracks to open up in these private sector names like Kotak etc?

A: Yes they will play the catch up now because we have seen a decent correction in the PSU space. I suppose the private sector will now start correcting. I will not be surprised if we see a correction as high as possibly of about 4-5% for some of these private sector names including ICICI, Axis and Kotak.

Q: Earlier we were talking about the possibility of 5600 on the Nifty, is that out of the reckoning now, is 5450 the top or do you think global liquidity might surprise sometime in September and we can still get back to those kind of levels?

A: Even if you have a global liquidity surprising, climbing to about 5400-5450 from these levels itself would be quite difficult. Although I don’t rule it out. I would reiterate that if you see levels of 5400-5450 you should utilize it to exit because on the policy action nothing is expected to happen for the next foreseeable 2-3 months. It doesn’t make sense buying into the markets at this point of time. So, I would book out.