Don't see Nifty below 5800; bet on TN sugar cos: Tulsian

SP Tulsian of sptulsian.com in an assessment of the current levels of the Nifty and the next level he estimates it to reach, says: "My call is that the Nifty is not likely to fall below 5,800 or go above 6050. I maintain that there might not be see much weakness going forward on the strong four-day rally of almost about 90-100 points which enabled the creation of huge long positions especially in the bank and automobile segments."

The analyst adds that those long positions seem to start getting liquidated and the shorts may have started to build up. "So, on a fundamental basis some value-buying may emerge in the next few days. I also estimate that there may be some short covering coming to the fore again on Friday which may not weaken the Nifty further and hold it steady at the 5,800-levels," he told CNBC-TV18.
With the overseas coal sources of power companies running into rough weather and state-governments voicing doubts about the Centre's SEB restructuring package, the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have acquired a negative tint. The sentiment on some of the top PSU banks such as the Punjab National Bank (PNB), Bank of Baroda (BoB), State Bank of India (SBI), Bank of India (BoI), Oriental Bank of Commerce (OBC) with large exposure to the power generation and distribution sector has also turned negative.
Tulsian doubts the financials of Core Education, Welspun Corp, Opto Circuit and Aanjaneya Lifecare and advises investors not to confuse trading sentiment and fundamental fervour on these stocks.
The analyst maintains a bullish view on the Bank Nifty for whole of this series and expects a further weakness of 2-3 percent on the Bank Nifty and the banking stocks.
Regarding the sugar sector, Tulsian continues to remain positive on Tamil Nadu-based sugar mills like EID Parry, Bannari Amman Sugar,Renuka Sugar in Karnataka and KCP Sugar in Andhra Pradesh., "But overall, I will stay away from sugar stocks."