Mkt may consolidate; investors wary of Q2 earnings: Choksey

Answering a query on whether he thinks the market has peaked for the near-term, Deven Choksey, MD, KR Choksey Shares and Securities says the investors at this point of time seem to be a bit circumspect on the second quarter (Q2) earnings.

He believes if not for earnings season the market would have gone up but expects the market to be in a range or consolidate this month. The Nifty could consolidate in the range of 5750-6050 in this period and closer to this range, we could see buying emerging since most traders are looking at margin of safety and refraining from entering into the market at higher price, he adds Also read: Bharti-Walmart split, to independently operate retail biz According to him banking stocks would be impacted because of the higher costs that they are assuming and also due to lower credit offtake and growth in the system. Moreover, one must also not forget the looming US debt crisis and its possible impact on world economies, so that too could be keeping the investors away. Therefore we have seen moderate buying by foreign institutional investors on a daily basis, and the confidence to go long in the market at higher level is missing, says Choksey All these factors are having an effect on the market momentum at this point in time, believes Choksey.