Dilip Bhat picks ACC & Aurobindo; says Nifty won't go below 8000

Giving his market outlook from the dealing room, Dilip Bhat, Joint MD, Prabhudas Lilladher says markets have shown a smart, sharp and sustainable rally in spite of absence from foreign institutional investors. According to him the current rally is in line with the one seen in other global markets, so one could either see consolidation at current levels or a couple of hundred point correction.
The level of 8000 on the Nifty is a very strong support and it is unlikely that it will go below that, says Bhat.

Bhat thinks the first quarter FY17 earnings are likely to be back-ended and investors will be keenly waiting for the management commentary post results.

Amongst Nifty stocks, he expects Aurobindo from the pharma space to do well. From the cement pack, he thinks ACC too looks interesting. All cement stocks will report steady a set of earnings but the question is whether prices will sustain or not because over the long-term government may not allow a surge in prices in cement and sugar, says Bhat.

From the upcoming initial public offering (IPO) space, L&T Infotech looks good. The quality of IPOs has certainly improved, says Bhat. Both Teamlease and Mahanagar Gas look good and can go places in about six months.