Correction by & large over; Nifty to consolidate: Choksey

Deven Choksey, KR Choksey Shares & Securities clearly believes that by and large the correction in the market seems to be over after it corrected from 9200 in Nifty Futures to around 8200 plus levels.Even though for the near-term the correction seems to be complete, one could see some falls but we are still in a bull market and these corrections are opportunities to enter at lower levels, says Choksey.According to him, Nifty will consolidate in 8200-8700 range and if it breaches those levels then 9000-9200 on the upside is likely.Answering a query if there were any new triggers for the market, Choksey says there are no new triggers as such. On the earnings front too the market would focus more on management commentary than the numbers, which could help market sentiment. Investors would look out for news on order inflows, he adds.According to him long only investors are using this opportunity to increase their positions. Globally too, if crude remains stable and currency is well behaved then FIIs would continue to come in. Furthermore, more rate cuts by RBI would be welcome, says Choksey.With regards to sector allocations, investors’ would have to selectively invest into infra but with a long-term view, he adds.

Below is the transcript of Deven Choksey's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.Anuj: Is the correction coming to an end or is it too early to take that call and from hereon, do you thinks the market will go back to all time highs over the next two-three months?A: What I believe is that the kind of correction which the market saw from close to 9,200 in Nifty futures down to more than 8,200 levels- almost 950-points kind of a fall. I would think that by and large the market would have completed the correction in this kind of environment.We are in a bull market and at the same time correction of this degree is certainly giving opportunity to people to buy at lower levels which is what we have experienced and seen.

Many of the largecap good quality stocks even including some of the midcap stocks -- a large chunk of shares have been bought by some of the long only investors. They have mopped up a good quantity from the market under the opportunity that they got. So I would think that correction by and large is coming to an end for the near-term. There maybe some fall left and one can probably always argue for it because some of the global headwinds are going to come to play. So certainly, I think there can be some fall left into it.However, considering the fact that this is a healthy correction, I would think that the market would probably stabilise around these levels maybe the range is shifting, 8,200 to 8,700 a range in which it can consolidate on the Nifty and should it go above that level then probably one can argue for 9,000-9,200 thereafter.As of now, we are consolidating and believe that the market could go up substantially thereafter in subsequent months.Ekta: What would be the next trigger for the markets at least the near-term trigger that you would be keenly watching, would it just be earning season?A: I believe that triggers are already set in. I don’t think that there are new triggers which are likely to come at this point of time. I would think that earnings season apart, more importantly, the commentary of the managements of the companies would be something which market players would be keenly looking at and watching for. The important aspect is that amount of order inflows which the companies are talking about and talking about executing in financial year 2015 and 2016, could possibly build up the sentiment in the market.At the same time, some of the long-only investors are using this as an opportunity to buy into the market, some of the quality businesses which are available. That could bring in a fresh sum of money. Government is trying its best to raise money by selling some of the PSU shares, so that could also invite some of the long only investors into the market.I would think the market would probably have the proposition in which some of the long only investors would come into the market and would use the current triggers by and large. I don’t see too many new things emerging.At the same time, some of the harder issues on the global front -- one is a currency fluctuation. If the currency remains well behaved then in such situation the money would flow in more easily from the global side. Crude oil prices are also moving in quite a sharp manner. So if that also remains stable then again it would give larger confidence to people to add new money into the markets. One can keep an eye on these two factors and of course the credit policy of Reserve Bank of India (RBI) as far as domestic front is concerned, which could possibly give some indication if they want to bring down the rate of interest. Maybe they can probably announce further rate cut of quarter basis point and then probably market could take it up from there onwards.