The market is trading steady right now despite rising oil prices and global trade war tensions, though some investors were a little bit circumspect of the market in 2018 after a stellar rally in 2017.
The Nifty fell more than 10 percent to hit a 2018 closing low of 9,998.05 (on March 23) after hitting an all-time high of 11,171.55 (January 29), but then showed a gradual and smart recovery of 9 percent from the lows to trade around 10,900 now.
The market cracked in February and March, pulled back smartly and is now holding steady. "I am not bearish on the market right now but have kept a selective bullish bias," Dipen Sheth of HDFC Securities said in an interview to CNBC-TV18.
Shriram Transport Finance Corporation
He said recent news about the company granting loan guarantees to its group company is a negative as it is taking on unnecessary exposure to liabilities.
Technology companies
Sheth feels IT is a 'winning horse' right now. "Q1 FY19 is expected to be a seasonally strong quarter and investors will read through cross-currency headwinds. Midcaps are trading around 12-16 earnings. In lagecaps, TCS is trading at 20 times or more."
Consumer durablesVoltas and Symphony are his picks in the consumer durables space. "One can accumulate Voltas around Rs 500-520 levels. Symphony is currently trading around Rs 1,400 levels after hitting a 52-week high of Rs 2,212.75 in January. It has corrected more than 36 percent from its 52-week high." He sees strong earnings visibility in both these companies.
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