See Nifty in 4100-4400 range in next 3mnths: Karvy

24020 Investors following Balrampur Chini. Share this News with them.

0

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

See Nifty in 4100-4400 range in next 3mnths: Karvy

In an interview with CNBC-TV18, Ambareesh Baliga of Karvy Stock Broking, spoke about his reading of the market and his outlook.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Nifty volatile, recovers post IIP data; RIL, Bharti up Sensex consolidates; banks, metals dip, IT, telecom up See flattish market movement in early trade 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 Balrampur Chini BSE | NSE 29/05/12 Are Mutual Funds betting on Balrampur Chini? Other Stocks in this news Gujarat Heavy Chemicals | Golden Tobacco | Neyveli Lignite Corporation | Bharat Heavy Electricals | Reliance Industries |

In an interview with CNBC-TV18, Ambareesh Baliga of Karvy Stock Broking, spoke about his reading of the market and his outlook.

Below is a verbatim transcript of an exclusive interview with Ambareesh Baliga on CNBC-TV18. Also watch the accompanying video:

Q: Do you think the correction is over? The Nifty is about to take out its intermediate high again.

A: It is nearly impossible to answer this. It is very difficult to trade in this market. Last week most of us were negative and the market behaved totally differently. Therefore, predicting a market is a good profitable discussion, but when it comes to real business one needs to have their strategy in place. We were waiting for last couple of weeks to buy at lower levels, but we got that opportunity last week itself. We expected it to be a much broader window than what it was.

However, the strategy is very clear that we would be exiting at every rise but in case there is a dip like we saw last week we will again start buying. We clearly do not expect too much of an upside from here but if there is an upside then we will utilize it to sell.

Q: Do you think you will get a buying opportunity as good as 4500 or it won't fall that much?

A: We are looking at below 4500 levels because clearly the valuation wise the markets are extremely expensive. Anyway between 4100 and 4400 is a fair valuation. We should see those levels over the next two-three months.

Q: What did you buy in the dip in terms of Nifty stocks?

A: We bought stocks like Reliance right from Rs 1950 downwards to around Rs 1825. We have been buying BHEL, Larsen & Toubro and Ambuja for investment. We are getting that opportunity to exit at higher levels we have done that again. In a stock like Reliance if you get 10-12% in just three-four days then it is prudent to book out. Similarly, in a stock like Bharti which we have been buying for a while ever since it dipped below Rs 325-330 levels, we bought all the way upto Rs 286. However, when you get 8-10% jump in three days we have booked out partially.

Q: Why didn't you buy Reliance ?

A: Closer to around Rs 1800-1850, it is fairly valued because we still have a price target of Rs 2400 in the next 12 months. However, if you are making 10-12% in three-four days, it is always prudent to book out. We invest as long term investors but we utilize the short term opportunities which the market gives. I do not think you can really trade in this market. People should invest and utilize the short term trading opportunities

Q: Are you buying anything from shipping now?

A: Not at all. In fact, we want to buy shipping at lower levels. We missed out on Mercator at closer to around Rs 42 levels, we wanted to buy around Rs 40. We wanted to buy Great Eastern at lower levels but again the current levels after this sort of a jump which we saw in the last two-three days we are again finding them expensive.     

Q: Are you buying anything from the PSU lot which has flared up because of divestment hopes?

A: We had a buy call on Neyveli Lignite last month and we had a price target of Rs 160. I think it is close to that now. Hence, we are not looking at anything now other than BHEL .

Q: Do you track any of these companies Gujarat Heavy Chemicals Limited (GHCL) or Golden Tobacco ?

A: We used to track GHCL around two years back, but once they got into that mess we stopped tracking that. Golden Tobacco is basically a story of the land bank which they have at Parla. I think valuation of that is much higher than the market cap of the company. So this open offer price will not get anything much at those levels because valuation wise, in case that land is developed or sold, this stock should actually quote at levels of Rs 160 or Rs 180.

Q: Would you be buying sugar now?

A: Surely not at these levels. In fact, we have been cautious on sugar in the last two months and that was the time we did not expect the sugar prices to move up much more from the levels they were at. Although they have moved, we have not seen a similar sort of a movement in the stocks. When we got cautious on Balrampur Chini it was Rs 120-125 levels and from there it just moves around Rs 15-20. Our view is that from hereon sugar will not move up more. So your risk reward ratio from these levels is quite skewed. The risk is very high hence at these levels people should be exiting sugar.