Nifty rally may be trap for latecomers: Ambareesh Baliga

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Nifty rally may be trap for latecomers: Ambareesh Baliga

Ambareesh Baliga, the COO of Way2Wealth finds it difficult to pin down a number for the February series. Even though there is market movement, he expects a correction.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » 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

The ride for global markets in 2012 has been exceptionally high. One has to concede that the global economic outlook does look a lot less dangerous today. But analysts and investors are questioning - how long can this bull run last?

Ambareesh Baliga, the COO of Way2Wealth finds it difficult to pin down a number for the February series. Even though there is market movement, he expects a correction.

Baliga's main concern is that it could be a trap for latecomers and recommends investors book out their profits.

Below is an edited transcript of his interview on CNBC-TV18. Watch the accompanying video for more.

Q: The rally is carrying on quite relentlessly. How much more do you see for the Nifty in February?

A: It is difficult to put a figure since we were expecting a correction and instead of that we just saw a correction for a day and after that we saw a bump up. Clearly the momentum is there. It can move up further from here but the question is it a trap for late comers? We feel that it could be a trap for latecomers. We feel one should be booking out at this point of time.

Q: How sharp a correction do you fear the market may see because of how relentless the run has been this last fortnight?

A: We have been maintaining that the market should see a correction to levels of about 4,800-4,850. The higher it goes it could be a very sharp one in that case it may not be a slow correction we were looking at earlier. We were looking at it slowly coming down and consolidating, instead of that we could see a sharp correction in case the market goes to 5,400 or 5,450. From those levels the drop could be quite sharp.

About four-five months back I was telling you that if the market falls below 4,800 levels, I would invest my safe money - the fixed deposit money into the market. This is the time to exit those investments and again get back into FDs.

Q: What about the telecom stocks and the market? How do you think the market will approach the 2G news this morning?

A: Most of those licenses which were not used that should be positive for the existing players, once the penalty etc is levied. It could be slightly positive for companies like Bharti and Idea.

Q: What would you do with Crompton Greaves ?

A: The results were really surprising and it's the management talk which has pushed it up and it's possible that we could see the levels of Rs 150-155. If you are talking of longer-term, I expect this company to get back on track at least over the next two-three quarters and we still have that price target of about Rs 200-220 for this stock.

Q: How would you approach Hexaware after the numbers?

A: The numbers are good and the guidance is much better but what I believe is that most of these I-T companies, the sort of exchange gains they have shown, I don't think going ahead in the next two quarters they will be able to show that. Even the business environment overall doesn't seem to be good. So at this point of time, I will not increase my exposure in I-T.