Nifty to make new highs after taking out 6000: Baliga

In an interview to CNBC-TV18, Independent Analyst, Ambareesh Baliga shared his reading and outlook on markets and specific stocks.

Below is the verbatim transcript of an interview aired on CNBC-TV18. Q: Are you getting ready for new highs on the Nifty? A: Absolutely. I think looking at the strength which we had yesterday and looking at the SGX Nifty we should cross 6,000 levels and stay above that going ahead and in this month itself we should see new highs. Q: If you had to chase this rally for the next 200-300 points what would give you more bang for the buck, banks or infrastructure names? A: Infrastructure because banks have moved up to a certain extent although they would perform going ahead. I think one will get higher beta from infra and the capital goods space, where there is still a lot of headroom left. So even at these levels one should be buying into infrastructure. Q: What about the gems and jewellery stocks, phenomenal run on some of them? A: I think that is more or less done with the curb expected on gold imports. The run in these stocks should get over anytime soon. It is time to book out especially stocks like Gitanjali Gems, Tribhovandas Bhimji Zaveri (TBZ). Q: Which names would you back in the banking space? A: Axis Bank, HDFC and among the public sector banks (PSU) Bank of Baroda other than State Bank of India (SBI), which I have been recommending. _PAGEBREAK_ Q: What would you do with some of the pharmaceutical names like Strides Arcolab or Ipca Laboratories? Would you be selling any of those faces now? A: I will not sell but surely I will not buy further at this point of time because going ahead pharmaceutical and fast moving consumer goods (FMCG) will not perform. The only space where I will sell right now is IT, where I see major underperformance, at least in the next three-six months. So it is time to sell IT at this point of time. Q: Has the time come to buy Jet Airways again? A: Not really. However from a trading point of view possibly one can buy because the deal is expected in the next ten days. So, from that point of view it can move up a bit from here. Fundamentally, it’s too expensive because fares cannot go up more from here; load factors are coming down. So doesn’t make sense buying Jet Airways at this point in time.   Q: Anything you would buy from non-index FMCG space? A: Not at this point of time. We had a good move in the last 18 months. I do not think they will perform as compared to the other sectors, in the next three-four months. So, it is better to look at infrastructure, capital goods, banks, autos, metals. These are the ones which will perform.