The recent rally in the face of weak macro-economic conditions has the Street confused on whether to chase prices or to wait for the market to correct.
Saurabh Mukherjea, head of equities at Ambit Capital spoke to CNBC-TV18 about how he reads the market. Below is the edited transcript of the interview. Also watch the accompanying video. Q: We have had a phenomenal start to the year which has brought us almost to 18,000. Would you take profits here and is your call for Rs 14,500 still intact for 2012?
A: On January 4, we made two calls 14,500 in Q1 and 18,000 over the course of the year. Clearly, the 18,000 call has worked out better than the 14,500 one. I think this month, we will continue seeing the market grind up.
The ECB announcement on Friday that there will be another bout of QE on February 29 will lend a lot of support, especially since the ECB said that the end of the month QE announcement will be similar in size to December 22 one. That sort of announcement will lend a lot of support to risk asset classes globally. So I think this month the market will continue grinding up.
The problems kick-in in March. Obviously, key set of political catalysts - RBI rate announcement and then obviously the budget. So March is going to be a far choppier.
This month I think the broad direction will continue running upwards. So if you are a speculator, if you have short-term profits in mind, I don
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