Nifty may see 5500 in couple of weeks: Ambareesh Baliga

The Nifty surpassed the 5,400 level for the first time since March 16, 2012. It rose 54.70 points or 1.02% to close at 5,421. The Sensex surged 194.18 points or 1.10% and ended at 17,885.26.

In an interview to CNBC-TV18, market analyst Ambareesh Baliga says, current rally is driven by the liquidity. "The market can move up more, but then it will move inch by inch, the way it has been moving in the past so many weeks. Levels of 5,450-5,500 should be possible in the next couple of weeks," he adds. 

However, he doesn’t expect too much of participation from retail and the HNIs. "They would be looking at possibly exiting in this rally than entering," he asserts.

Also read: Indian fundamentals weak, rally won't sustain, says Sanger

Below is the edited transcript of his interview on CNBC-TV18.

Q: What is your view on the market now?

A: It can move up more, but then it will move inch by inch, the way it has been moving in the past so many weeks. Levels of 5,450-5,500, which we have been talking about, should be possible in the next couple of weeks, but don’t really expect too much of participation from retail and HNIs. They would be looking at possibly exiting in this rally than entering. It is a liquidity driven rally.

Q: We haven’t seen very good breadth in the run up to 5,400, does that tie-in with the fact that there is been very poor local participation?

A: Absolutely. The way people have lost in the past two to three years that unless the market holds on at those higher levels for atleast four to six months, which seems difficult, only then I suppose these people will again come back and basically invest in market. I suppose that will happen only if you see the market holding beyond 5,800-6,000 atleast for a couple of months. I think that is very difficult looking at the situation, the ground reality right now.

Q: Is any short covering expected above 5,400?

A: I don’t think too many people are really short because the market has been inching up. Clearly, atleast the short sellers have been defensive. I don’t think there are any major shorts. So, I don’t expect the market to jump up because of short covering.