In Feb, Nifty has one-way ticket to 6000: Ambit Capital

There is no stopping the Nifty in the month of February. Within two hours of opening, the Nifty raced more than 80 points to cross 5,500, a first since its hey days of early August 2011.

Speaking to CNBC-TV18, Saurabh Mukherjea, head of equities at Ambit Capital said the liquidity will continue to flow in February pushing the Nifty through one-way traffic towards the 6,000 mark. He, however, cautioned that March will see the hiccups and investors should focus on high-quality cyclicals having strong balance sheets. Below is the edited transcript of Mukherjea's interview with CNBC-TV18. Also watch the accompanying video. Q: Now that 5,500 has been scaled where do you see the Nifty headed? Do you think that the momentum is strong enough for it to scale another 5-10%? A: The market will keep grinding up in February. The market momentum, investor sentiment and FII flows are the strongest, that I have seen for a good two years. February will be one way traffic, especially given that the core inflation data also worked out in the market's favour. March will be a more difficult and uncertain month, but this month looks to be one way traffic and the Nifty heading towards 6,000. Q: End of the month we get the GDP data but do things like this worry because that number would be perhaps south of 6.5%. Would these things bother the market at all? A: You are right in eluding this. Broadly speaking weak IIP data, weak GDP data for at least two more quarters is factored into the stock market now. We all understand the economy is in a weak patch and it will stay here, until RBI turns the rate cycle around in April. Once the RBI starts cutting from March-April onwards it will take 6-9 months for that to turn the economy around. That