Rupee may once again go to 51-52/$: Fortune Equity Brokers

Abhijit Chakraborty, senior vice president of institutional equity at Fortune Equity Brokers spoke to CNBC-TV18 about where he sees the market moving to. "It is rather likely to consolidate between 5300 and 5450 or 5500," he says. Chakraborty expects a temporary pause in the rupee carry trade and in the liquidity surge. "The dollar index could revert back to about 80-81 and rupee could once again go to 51-52 levels against the dollar," he says.

Below is the edited transcript of his comments. Also watch the accompanying video. Q: How much upside do you see from here for the Nifty?
A: I believe that we are in more of a consolidation phase in the market right now after seeing such a sharp upside in the market I think the market will continue to be in a zone and neither see a very significant upside from here nor a downside. Downside protection is coming from positive global factors and Greece resolution and inflation coming down, so the macro economic details are going to give support to the market. But on the upside, we are not going to see the kind of sharp momentum that we were seeing in the beginning of the year. That is because I think the rupee carry trade which was essentially driven by liquidity factors had taken the market up I think that is going to take some pause, dollar index could revert back to about 80-81 and rupee could once again go to 51-52 levels. So I am expecting a temporary pause in the INR carry trade and a pause in the liquidity surge. So the market is going to be in a consolidation phase for the better part of the month of February. Q: What kind of range do you see the market consolidating in and what would you set as the base of the floor for it?
A: I think the Nifty should consolidate in a range of 100-150 points, that is, between 5,300 and 5,450 or 5,500. But yes, one should book profits in stocks which have not been driven so much by fundamentals but purely by liquidity factors, and which have shown 60-80% kind of appreciation. On the downside, whenever market gives an opportunity of running correction of about 50-100 points on the Nifty, one should look to reinvest into the market. Broadly, 150-200 point kind of range should be seen on the Nifty. Q: What did you make of the numbers from Tata Motors and how would you rate that stock compared to its auto peers now?
A: We have been continuously bullish on Tata Motors, mainly driven by the increase in the volumes and sales from Jaguar-Land Rover (JLR). Couple of launches by JLR, especially the Evoque and the new XF diesel, they have done much better than what the analysts were expecting. I think the record number of dispatches which have been seen in the month of December augurs well for the coming quarters as well. So yes, we are continuing to be very positive on Tata Motors and after yesterday