Markets will reverse only if Nifty tests 4675: Atul Suri

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS 10-15% mkt rise in a month not good for India: Blackstone Raamdeo Agrawal's top sector picks for your portfolio 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 Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

The surprise rate hike is sure to play its trick on the markets. Though the 25 basis points (bps) rise in rates was expected, the timing is what is has disappointed the markets as they opened with a gap down but managed to stay above 5,200.

With the way things were looking over the weekend, post the rate hike, the morning has been a bit of a pleasant surprise, as markets did not clip-off very much, said trader Atul Suri. He believes that India is still a part of the global equity bull market. "Markets may see short-term blips, but 5,100 on the Nifty will act as a very good support. Also, the markets will reverse only if the Nifty tests 4,675-the previous bottom."

Talking specifically on sectors, Suri said the banking space along with the midcap pharma stocks were expected to surprise the markets on the upside. Among the heavyweights, he likes Reliance Industries (RIL) and expects it to break out on the upside after consolidation.

However, being bearish on real estate, he said, "It has been a lagging sector."

Next page: Transcript of Atul Suri's exclusive interview on CNBC-TV18.