Bank on July series reaching 5300-5400 levels: Way2Wealth

As the June series comes to a close today, expectations are ripe as to what the market can look forward to in July.

Ambareesh Baliga, COO, Way2Wealth says he has been quite bullish in the past couple of weeks and continues to be so. He was talking about reforms flowing out and with the noises which we are hearing from Delhi – we will see that flowing out over the next couple of weeks as the government doesn’t have much of a choice.
“I suppose for the July series, if things work out like what we are expecting, I will not be surprised if we see levels of 5,500-5,600 but surely 5,300 to 5,400 is there for sure,” says Baliga. Below is an edited transcript of his interview. Watch the accompanying video for more. Q: Are you buying going into July?
A: Yes, in fact we have been buying for a while now. Earlier when the market was struggling at 5,000-5,050 levels, at that point of time we had sold off to a certain extent because we didn’t know exactly whether the market could break out of those levels or again go back to 4,800 but once it broke out of those levels, we again start investing. Q: What do you do with some of the influential faces like Tata Motors? This morning there are reports of a shutdown again and this time the company is saying it’s because of economic conditions. They seem to be tottering both in terms of local and global demand?
A: Yes, it’s because of economic conditions but if you talk to the car dealers there is an inventory of about a month-and-half-two months across various plants and this inventory is also now getting to the godowns of the companies itself. So it is natural that most of them will shutdown at least for a while to dwindle the inventory. At these levels, I do not suggest to people to buy Tata Motors. I suppose we should again see levels of Rs 220-225. Q: This morning there are reports that HSBC maybe selling stake in YES Bank and Axis Bank. Are you looking to exit some of the more expensive private banks?
A: Not really, in fact we like Axis Bank and because of this news we see some sort of a correction in Axis Bank. I will utilise that as an opportunity to buy. Q: The real stars have been some of these gold NBFCs. Have you been buying either Muthoot Finance or Manappuram Finance? What are your thoughts on those faces?
A: Not really because the bounce back which we are seeing now is more of a trading bounce back. Looking at the gold sale scenario, there has been a slowdown in the last couple of months. So post this bounce back, I do not see them sustaining at these levels. So a 5-8% move from here and that’s it.