Nitin Jain, head - Capital Markets, Edelweiss Securities sees the December series expiring around 6,275-6,325. Speaking to CNBC-TV18, he says midcaps are likely to outperform largecaps in near-term since there are huge valuations on midcaps which is expected to converge going ahead.
Jain prefers midcap IT, select pharma scrips and banks. He is bullish on ING Vysya Bank.Also Read: Taher Badshah sees more juice in midcaps, picks top 5 bets
Below is the verbatim transcript of Nitin Jain’s interview on CNBC-TV18
Q: It has been quite an interesting series although the headline index has not moved much, just about 3-4 percent, you have seen a lot of sectors like IT, real estate, metals, capital goods that have seen significant participation, how are you approaching the January series first up on the headline index? Will it continue to be range bound? What are the key sectors to watch out?
A: There is a lot of action happening beyond the indices and despite the fact that Nifty has been reasonably range bound, stocks in a lot of sectors have gone off 30-50 percent and this is that kind of a mood where risk-on trade is quite light and a lot of people are betting on midcap and smallcap companies where valuation gaps had just become too high to be sustained over a long period of time. So, a lot of people are making those bets that these valuations will converge and probably midcaps will tend to outperform largecaps over the short-term.
Q: Where do you think the contract is likely to end?
A: I will not be able to hazard a guess but the way indicators are moving seems that at a headline level not much should happen today. So a reasonable guess would be in the range of 6,275-6,325 and that is where I would put my bets on.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!