No U-turn in mkt; see Nifty at 5350-5400: Rahul Mohindar

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No U-turn in mkt; see Nifty at 5350-5400: Rahul Mohindar

Rahul Mohindar of viratechindia.com tells CNBC-TV18 that yesterday's 100 point decline does not indicate a reversal in market momentum and that it is only a correction or pullback

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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

Rahul Mohindar of viratechindia.com tells CNBC-TV18 that yesterday's 100 point decline does not indicate a reversal in market momentum and that it is only a correction or pullback. "We did not read yesterday as a down breakout; I think a lot of traders in the fraternity expected 5100-5200 to be a block hole," he said in an exclusive interview, adding that the positive trend on the Nifty continues.

For the short term, Mohindar believes the Nifty will move to 5350-5400 levels, and can even move to 5600 in three months. "So use this as an opportunity to get in stock selectively," he advised. For February, he sees 5000 as the maximum downside for the Nifty.

Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: Technically how did you read yesterday's close and what kind of levels would you now watch on the index?

A: On the Nifty I think 5,050-5080 are potential points the market could always come to in a corrective mode. We did not read yesterday as a down breakout; I think a lot of traders in the fraternity expected 5100-5200 to be a block hole because there are major long-term trendlines which come in around that zone and that is precisely why you are seeing some kind of pullback at these levels.

I still think broadly speaking the Nifty continues to be positive and to resume some kind of serious downtrend we need to get to levels 4950-5000. So I am reading it as clear cut correction, probably an opportunity to get in stock selectively.

Q: What kind of targets to do you have on the Nifty in the up move whenever it resumes?

A: If one is looking at February per se, I think probably on the downside I would look at a range of about 5000 and on the upside I would look at 5350- 5400 from short-term angle. But on the whole, I think the market has the steam to even move up to 5600-5700 in the next three month window.

Q: Technically how much more downside do you see in BHEL ?

A: We might move around to Rs 220-225 which is the previous bottom area; it would be difficult to say that we would move much lower. I don't see this as an immediate shorting opportunity and what we saw yesterday was savage and sudden. It doesn't call for an immediate sell, so probably people will look for intraday upsides to sell into it or get out of it. My sense is it is really not a good short bet and I think slowly and steadily it might just hang around here and move towards Rs 225.

Q: Two stocks that have had good rally up until now but corrected sharply yesterday were Suzlon and REC .

A: I am not too bullish on both these stocks, particularly if I am looking at a medium to long-term perspective. In the short run, you might see some kind of an up move, so probably Suzlon may come down to Rs 24-25 then finally take off to even levels like Rs 31. I think the long-term trend on both REC and Suzlon is yet to change, so I would avoid these stocks particularly from an investment profile.