Use dips to enter market, advises Anu Jain

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Use dips to enter market, advises Anu Jain

Despite volatility, the Indian market has been firm. Anu Jain, senior vice president of IIFL Private Wealth Management says, 5,195 is a decent support for the Nifty. “I would advise selective stock picking on any dips,” she adds.

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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 Bharti Airtel See messages about Bharti Airtel Bharti Airtel BSE | NSE 25/05/12 Are Mutual Funds betting on Bharti Airtel? Other Stocks in this news GMR Infrastructure | Jaiprakash Associates | Housing Development and Infrastructure | DLF | Cairn India | Jet Airways | Kingfisher Airlines | Hindustan Zinc | Voltas | Crompton Greaves |

Despite volatility, the Indian market has been firm. Anu Jain, senior vice president of IIFL Private Wealth Management says, 5,195 is a decent support for the Nifty. "I would advise selective stock picking on any dips," she adds.

According to her, 5,400 is a resistance. "It only if 5,195 gives up, maybe due to global reason, selling would emerge. So, the dips should be use to get into the market," he adds.

Also read: Nifty may correct to 5000, says Way2Wealth's Ambareesh Baliga

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

Q: What have you made of the last few days and the index sort of meandering? Is it just taking a pause or would you look to get a bit cautious on the upside now?

A: We have been cautious since 5,100. It's not paid to be cautious. The support is decently strong at 5,195 because you have spent some time around it. So, a lot of people who have missed out the bus would look at a correction to 5,200. That would be a fair correction to get in. So, any dips are basically going to be seeing a lot of buying coming in.

It only if 5,195 gives up, maybe due to global reason, selling would emerge. So, the dips should be use to get into the market. Yes, 5,400 is a resistance. It's been a resistance. So, you will see that kind of meandering, which we have seen over the last one week.

However, if it were to take it out, much against people's expectations then you have got no major resistance right up to 5,620. So, it could again do another 200 points. But there would be profit taking between now and 5,600. So, I would advise selective stock picking on any dips.

Q: Where do you see the supports in Bharti now after yesterday's fall?

A: Bharti is close the support of Rs 352 to Rs 355. So, after the fall yesterday, I think it is close towards support. It can break that. But now it's into a buying zone, considering the chart patterns. If you get a dip up to about Rs 336-337 due to a correction overall in the market, I think that is a great point to get into the stock whether as a trading level or whether as investment level.

We are looking at any dip below this 345-342 with a stop loss around Rs 335 to get into the counter. For investors, it's a long-term hold, for short-term traders or medium-term traders you will get back those Rs 380-400 levels pretty soon in about a month's time.

Q: What are you doing on some of the infrastructure names- GMR and JP Associates ? Do you have any longs on that sector?

A: Engineering and infra pack, yesterday these have done some pausing, profit taking. I feel some of them have continued to go up.

If the market were to sustain at 5,400, the midcaps, especially the infra midcaps, would take-off from here. So, I am looking for stability around these levels. I think this time probably the higher beta one would even do better.

Lanco, at Rs 16.25, if it holds to Rs 15.90-15.80 kind of levels, it will do another 5-6% pretty soon. A stock like Voltas, which is at Rs 97, if you look at from where it started to fall, it's still nowhere close to it. So, in a dip, if you get it closer to Rs 94 then that is showing action, traction to about Rs 110 kind of levels.

We basically need consolidation, correction to get into these stocks again. But, as of yesterday's close, these are the two stocks which are looking fairly decent to get into.