The Indian benchmark indices after seeing consolidation through the day, closed higher.
The Sensex was up 34.62 points at 27201.49 and the Nifty gained 7 points at 8342.95. The market breadth remained positive as about 1556 shares advanced against 1203 declining shares on BSE.
Fundamental and technical experts in an interview to CNBC-TV18 shared their views on the outlook going forward and some stock specific ideas.
Sudarshan Sukhani of s2analytics.com still recommends going long in the market with a stop at 8240. There is no reason to be bearish, he says.
Discussing on whether one should subscribe to the L&T Infotech initial public offering (IPO), Ambareesh Baliga is actually cautious on the overall IT space but with the way some of the recent IPOs have performed he said one can subscribe the IPO for listing gains. It is possible to get gains of 15-18% on IT. However, otherwise he is cautious on the IT space for the next 3-4 quarters.
With regards to Larsen and Toubro, he doe s not advice buying fresh at current levels but one can hold on to it, if they are already invested.
Contrary to Baliga, Prakash Diwan of prakashdiwan.in does not recommend subscribing to L&T Infotech IPO, saying it is competitive a competitive market and the IPO price does not leave much on the table. He would wait for 3-4 months before taking a decision on entering the stock.
However, SP Tulsian of sptulsian.com recommends applying for the IPO, saying that it is likely to get compared with Mindtree and Mphasis and the growth reported by the company too has been impressive. He thinks currently the whole sector is lackluster and so maybe the timing of the IPO could be wrong. One is sure to make long-term gains in it.
Sharing his views on the CNX IT index Ashwani Gujral of ashwanigujral.com says rallies in the IT stocks have been brief and large stocks are falling, which confirms that serious money is being pulled out. So, every small rally should be used to sell or go short on, he adds. Any rally on CNXIT, sell it. If level of 10800 goes, which could be equivalent of 7000 on the Nifty. It looks like mini bear market in IT, says Gujral.
Gujral says getting into real estate stocks right now is also not a great idea.
In a partial relief today, Lupin , the pharma major has received an Establishment Inspection Report (EIR) from the US drug regulator which states that the inspection conducted in July 2015 at Lupin ’s Goa facility has been closed.
Baliga is cautious on pharma except Lupin and Sun Pharma and advices buy them whenever there are regulatory issues. So don’t buy fresh into Lupin at current levels, although taders can pick it up, he says.For the full discussion, watch video
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