Experts not convinced with market rally; IT safe to hide

Moneycontrol Bureau

The Indian market had an extreme volatile trading session on Friday but closed positively with the Nifty gaining 63 points to close at 5,472 and the Sensex gaining 219 points to close at 18,620. The rupee appreciated slightly and was at 66.24 against the dollar at 15:37 hrs.

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Despite the Nifty crossing the psychological level of 5400, Rahul Mohindar, viratechindia.com is not convinced about the market trend and feels some more some clarity is required before one can be sure about it. The Nifty needs to decisively break 5,600-5,630, he added.

"From a short-term trading perspective, I would keep my eyes set on 5,300 at the base and about 5,630 on the top, wait for the market to break out one of these levels to get some newer direction," he explained.

Anand Tandon, CEO, JRG Securities sees no reason for the market to be moving up in a hurry. "There is no reason to assume that 5 percent GDP growth is floor growth for India anymore. It is possible that one may even see 4 percent not 4.8 percent growth as is currently assumed. So, I am not a bull right now," he added.

Which is best sector to hide in now?

In the current market situation, Tulsian believes IT is the only place to invest in. Tandon finds midcap IT still relatively cheap. Among the large caps, Tech Mahindra is still trading at less than 10 times and so, he believes one can look for opportunities there.

Meanwhile, Tulsian, sptulsian.com feels that the market had already factored in the passage of the Land bill. He sees this bill as a positive for those real estate companies who have been holding good chunk of land like Jaypee Infrastructure and GMR Infrastructure.

“There are many real estate players those who have been sitting with land, fully paid, have been holding in their possession. So there they can see some windfall gain,” he adds.

Sharing views on the macros, Anand Tandon, CEO, JRG Securities said that there is no reason to assume that 5 percent GDP growth is floor growth for India anymore.

“It is possible that one may even see 4 percent not 4.8 percent growth as is currently assumed. So, I am not a bull right now and I don’t see that there is any reason for the market to be moving up in a hurry,” he adds.