Mkt to see new high; India won't be downgraded: Quantum Sec

Sanjay Dutt of Quantum Securities sees the market soaring to new high in the immediate short-term, but says breaching 6100-6120 range would be difficult for Nifty. On the downside, 5600-5800 is the concrete base for the market now.

Those looking to play the market should focus on sectors like metal, chemical and textile, he told CNBC-TV18 in an interview. Dutt is also bullish on export-oriented sectors and expects them to benefit in short-term. “These sectors will benefit over the next few months once liquidity and credit flows improve and demand starts to pick up in the economy. We have seen the worst in the economy,” he elaborated. He does not see India being downgraded.
He further added that one can also look for good opportunities in public sector banks. Also Read: Mkt won't rally over 5%; focus on quality stocks now says Kotak Instl Below is the edited transcript of Sanjay Dutt’s interview with CNBC-TV18 Q: How are you approaching the market, is there tactically some money to be made? A: In the immediate short-term, we are on the higher end of the range. It is going to be very difficult to breakout of 6,100-6,120, but the index has been deceiving for quite some time because if you look at the broader market, there is so much of damage. I would recommend playing the market. One can look at stocks other than the ones that have rallied and are part of the index. I think that is where the play is going to be because if we are out of the woods right now particularly in terms of fear of immediate Fed tapering then we would see some amount of action spreading out and the rally broadening out a little over the next few days. Q: How would you play this especially in terms of the stocks that you just mentioned, what are you looking at, will it be more to do with the midcap oriented stocks or are you looking at the largecap stocks? A: I would focus over the short-term to medium-term. Sectors like metal, chemicals, textiles and export oriented sectors will benefit over the next few months once liquidity and credit flows improve and demand starts to pick up in the economy. We have seen the worst in the economy. Those are the places one would start looking at on every retracement in a bad day. But on an extreme day like this, I will be a little skeptical to rush in to buy. If I do find some stocks which are still not caught up in the last few days, I would look to buy even in the largecap space.