Mkt to move up; bet on IGL, Axis Bank: Experts

The Sensex closed the day at 20,128.41 up 179.68 points, while the Nifty ended trade at 6,038.05, up 64.75 points. Devangshu Datta, consulting editor, Business Standard says that since late June the market has been on an uptrend when it touched the peaks of 5,900 and then 6,040. "The market will continue to edge upwards and end the settlement without too much of a downside," he told CNBC-TV18.

Devangshu Datta adds that the market could fall if the RBI hikes rates. "I can't make a guess but any hike in the repo will cause a steep fall in the market. I don’t think earnings will have a bad impact as the expectations are not too high at the moment."
The market expert estimates that if the market stays above 5,900 then it fares reasonably well for settlement. "Investors could set an upside target at 6,220-6.230 — that would be a very key breakout point. If the market goes past 6,230, I will be extremely surprised."
With Reliance to declare earnings on Friday, SP Tulsian of sptulsian.com estimates a fall in gross refining margins (GRM) at about USD 7.9/barrel from USD 10.1/barrel. "Though it is too early to take a call, petchem performances are likely to be slightly better on gains from depreciation of the rupee because the product prices are always derived on import parity prices."
SP Tulsian is positive on Axis Bank earnings and says that the results have brought comfort to the stock on which huge shorts were built up. "I will not be surprised to see the price moving back to a level of Rs 1,260 in this series largely on short-covering and strong results."
Regarding PNGRB's legal battle with Indraprastha Gas (IGL), the government told the Supreme Court, in an affidavit, that the PNGRB is not empowered to fix gas and petroleum prices. On the impact of this affidavit on IGL's stock, Tulsian calls the move positive for gas distribution companies like IGL. Bajaj Auto has been quite volatile for the past three months, Tulsian is cautious on the stock and does not expect the company to declare strong results. “Despite the labour agitation, the stock has been holding on at around Rs 1,900. Investors can expect the share to correct to about Rs 1,820 by Friday or Monday."
A lot of brokerages have suggested upgrades on Exide. Tulsian does not see the stock moving beyond Rs 140 after which he estimates the start of profit-booking. "Yes, the Q1 earnings have really been good. But I don’t think that company will be able to post an EPS of more than Rs 7 for FY14." Ajanta Pharma is ruling at over Rs 1,000 levels to trade at 25 times FY13 earnings. Tulsian views that such a sharp move does not offer comfort for the stock. "I have recommended buys on the stock when it used to rule somewhere around Rs 700 a few months ago. But I am not too enthused by the bonus and will be cautious on the stock."