While the India story still remains strong, global cues seem to be worrying our market. UR Bhat of Dalton Capital says currently foreign institutional investors (FIIs) will decide which way the Nifty moves. Therefore, cues from the eurozone need to be watched carefully in the near-term, he says.
"The Nifty will find support at 4700 levels if Europe manages to hold up," Bhat says in an interview to CNBC-TV18. Calling the rally just a technical pullback, he says that the Nifty is likely to move up a maximum of 2-3% in the next few trading sessions. "If at all the market does move up, the next resistance level for the Nifty is seen at 5150," he says.
"India remains attractive valuation-wise at less than 12 times one-year forward earnings," Bhat says. "If we can figure out a solution to our fiscal and monetary problems, FIIs will be back with a bang," he says.
However, if RBI decides to continue with its rate hike in the upcoming policy meet, the pain for the market could last a while longer, he opines. Below is the edited transcript of his interview. Q: Is 4700 a bottom or you can
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