Monsoon key trigger for mkt; Nifty may go to 8300: SBICap

Mahantesh Sabarad, DY VP-Research, SBICap Securities in an interview to CNBC-TV18 spoke about his outlook for the market going forward.According to him monsoon would be the key trigger for the market going forward. The Nifty would probably head towards to 8300 mark, which would then become a buying zone.  However, one-two years down the line it would eventually move to 9400-9800 range, he adds.

Talking stock specific, he has a buy on Sun Pharma, and suggests avoiding Mahindra and Mahindra on back of lack of pick up in rural demand.With regards to IndusInd Bank he does not recommends buying it post correction but says one can hold it.Below is the transcript of Mahantesh Sabarad's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.Anuj: Give us a word on the market itself. We have corrected quite a bit, do you get a feeling that we are going back to the recent lows and maybe break that and correct 15-20 percent or is this a good buying zone now?A: Sometime back we were talking about what the Nifty would be, so we were saying that until September probably we will see a flattish movement. So we will see 8,500 - plus or minus 200 points in terms of the Nifty range and the market seems to be moving into that. Although y last week the market did touch almost 8,900-9,000 but the overreaction is being seen.So to answer your question, do we see the lows being broken. Probably we will head 8,300 kind of number but that is the buying zone so anything below 8,400 mark is a buying zone. If you look at one year down the line, two years down the line eventually we are going to see the Nifty somewhere in the range of 9,400 to 9,800. Whether that journey from here onwards to that going to be smooth will be determined by what move we are going to see in terms of the monsoon play.

for his stock specific ideas watch video