In an interview to CNBC-TV18, Jagdish Malkani, Member, BSE and NSE, Sudarshan Sukhani of s2analytics and Mehraboon Irani, Principal and Head- Private Client Group Business at Nirmal Bang Securities share their outlook on various stock specific bets and the roadmap for the market hereon.
According to Sukhani, IT sector is coming out of a very minor correction making defensive stocks candidates for an upside.
Concurring the view, Malkani feels IT space continues to be a robust story for the country, as largecap IT companies persist to take away market share.
Meanwhile, Irani feels money could slightly go out of the market as valuations look stretched. Barring a few, he is not overweight on the defensives. However, he believes the market will give better opportunities going ahead.
Below is the verbatim transcript of Sudarshan Sukhani’s interview:
Q: You spoke about IT earlier, is today’s move slight outperformance IT just that a one day outperformance as there is a bit of rotation there or can this continue?
A: I think it will continue. This market is not going down so sector rotation is exactly what happens when the markets become flat and sideways. IT is coming out of a very minor correction, so, IT and pharma are likely candidates for more on the upside.
Q: On the charts, does Ashok Leyland look like its only going one way up?
A: It does but I think it is not easy to buy that stock unless it goes through a consolidation or a correction. So, in reality for traders or investors Tata Motors and Maruti Suzuki are better options because it is easier to enter them.
Q: Oil marketing companies HPCL had a terrible day, BPCL had a terrible in fact all of them had a bad today. How are they looking on the charts?
A: On the charts they are in a strong bull trend, these days will come, after all this is a market; it is a public outcry, open market, some things will happen. You have to buy them when this decline stops; one or two days that is all.
Q: Is that stock poised to go up or down, United Spirits (USL)?
A: It is going to go up.
For complete interview, watch the accompanying video
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