Nifty resistance at 5745; banks, FMCG to do well: Anu Jain

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Nifty resistance at 5745; banks, FMCG to do well: Anu Jain

The Nifty has had a great run last week. Anu Jain, IIFL Private Wealth Management says, 5,745 seems to be the first resistance. According to her, Banking and FMCG will continue to be strong as a sector.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Anu Jain See what other Experts & Brokerages are saying about SBI See messages about SBI SBI BSE | NSE 29/05/12 Are Mutual Funds betting on SBI? Other Stocks in this news Hindustan Unilever | ITC | Axis Bank | Housing Development Finance Corporation | ICICI Bank | Kotak Mahindra Bank | Yes Bank | GVK Power & Infrastructure | IVRCL | GTL | HCL Technologies | Tata Consultancy Services | Castrol India | Housing Development and Infrastructure | DLF | Indiabulls Real Estate | Bharti Airtel | Maruti Suzuki India | Delta Corp | Dish TV | Mahindra and Mahindra | Hero Motocorp |

The Nifty has had a great run last week. Anu Jain, IIFL Private Wealth Management says, 5,745 seems to be the first resistance. "Index may not do as much as we have seen in the last two weeks. But what you will see is the midcaps trading favorites, the high betas probably takeover from here."

According to her, Banking and FMCG will continue to be strong as a sector.

Also read: Sensex to touch 19000 but earnings may be a spoiler, says Ambit

Below is the transcript of her interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos.

Q: We had a terrific week on the Nifty. Is it looking like it can take out 5,700?

A: The resistance more is at 5,745-5,750. Yes, psychologically 5700 still poses a resistance. But I would say 5,745 seems to be the first resistance. The way market has held out over the last whole week, I think it can scale out there. Maybe it will need to consolidate for a couple of sessions which is well and fine. If there are any shorts built up on Friday then that could give the next round of impetus to the market.

Banking and FMCG will continue to be strong as a sector. Banking has got another resistance coming up on the index at about 11,450 around. FMCG also looks very good.

Surprisingly, on Friday, more or less there was no correction in the real-estate sector. Even the index is showing a good move up. Though it's not an index move, those are the stocks which can probably lead. So, probably index may not do as much as we have seen in the last two weeks. But what you will see is the midcaps trading favorites, the high betas probably takeover from here. And that could be the next round of trading bets for the whole week.

Q: Tremendous work done by the Bank Nifty as you said. Is it mostly the SBI impact or do you think this is the index to watch, if the market is to get to 6,000?

A: I would watch the banking index. It had been the leader the last time, when the market went up to 6,000. The only change is that probably instead of oil and gas, which continues to be very weak as a sector, it's a mild impact from the FMCG is helping at. Both HUL and ITC are lending great supports. But banking will have to perform. As I was just saying that if it moves up to about 11,450 and can hold there then the next leg would be even stronger than what we have seen up till now.

SBI, Axis , HDFC , ICICI , Kotak and Yes Bank are really pulling the market up on the banking side. But PSUs and the smaller sides have not yet shown that kind of strength building up into them. So, I would watch that out. But I think probably Bank Nifty at 11,450 is the key resistance. Once it crosses that, it would probably take the market into near highs.

Q: What about FMCG?

A: This is another sector which is going to lead the indices. If I look at ITC, any dip, which you get up to Rs 197-196, should be bought into because honestly on the chart it is showing very high a probability of it going to Rs 217. If you look at Hindustan Lever, it gave up a bit at Rs 336 on that day, but I think it's another stock which is looking good to give another 5-6%. It may not give you the same kind of momentum that we have seen at off late. Definitely it will save you even in the market which may correct due to the result season, but also steadily is going to give you about 2-3% a month. So, I think it is still looks good to hold. I would probably buy ITC on dips or even a Hindustan Lever.

Q: Any pullback that you are seeing on infrastructure now? Friday saw some buying on faces like GVK , Lanco, Hindustan Construction?

A: If the indices is not to do much, between now and the result season getting over, trading interest will now shift to probably midcaps high betas or where people think that scrip hasn't moved much. So, you might not see a trend change in the infra. But you may see definitely a 5-7% pullback coming into it, into things like IVRCL or GVK or GTL . So, essentially it's a question of what hasn't moved up till now and people trying to concentrate on that because they feel that probably there is safety there, though honestly I feel the stronger hands will still become stronger.