See Nifty closer to 5850-5900 in next 2-3 weeks: Baliga

“We are headed upwards. I will not be surprised to see levels closer to 5850-5900 in the next two or three weeks. Possibly by this year end and early next year, we could be touching new highs,” he said confidently.

According to Baliga, a small correction should be used as an opportunity to buy infrastructure, capital goods, banks and auto stocks.

If the Nifty remains steady, Sudarshan Sukhani of s2analytics.com is of the view to take a long position rather than take Futures. “Risk traders will find it easier to buy 5700 October calls, and if the market continues its upswing as it has for the last few days, the calls should be a well thought-out strategy,” he advises.

Below is the edited transcript of the interview

Q: There has been an underperformance among Indian equities as compared to the European markets today. Is it that we are just taking a day off today?

A: It looks like it. After a superb performance last month, being one of the best performing markets, instead of correcting last week, we saw consolidation in the market. I think that will continue for a while longer. But clearly, we are headed upwards. I will not be surprised to see levels closer to 5850-5900 in the next two or three weeks. Possibly by this year end and early next year, we could be touching new highs.

Q: If you had to go back to the drawing board and reassess your portfolio, where is the opportunity for stock-picking now with respect to the front-liners?

A: I have been saying this for the last three weeks that nation builder sectors are the sectors to be bought into, which were beaten down. Although we have seen a good move in the last three weeks, I still think one should buy infrastructure, capital goods, auto stocks on a correction, and surely banks, which had a good move. But I think on a small correction, one should get into banks in this month.