In a discussion on CNBC-TV18, Nipun Mehta, Blue Ocean Capital Advisors, market expert Anand Tandon and Sudarshan Sukhani of S2analytics.Com share their views on the market and their preferred stocks going ahead.
According to Sukhani, IT and pharma are still worth buying as these two sectors have been consistently performing well. He believes Nifty will rally in the coming days and therefore, these sectors are likely to outperform. He is also bullish on the financial sector.
Echoing his views, Mehta also believes that one should hold on to IT and pharma as there is a fair amount of optimism in these sectors. In the next few days lot of global cues are expected and that is something the market will look forward to, one will see fair amount of rally happening in these two sectors, he adds.
Meanwhile, Tandon is bullish on auto stocks like Maruti and Eicher Motors. He also like private banks in the financial space and prefers betting on ICICI Bank for now.Below is verbatim transcript of Sudarshan Sukhani's interview:
Q: When we spoke a short while ago it didn’t seem that we would make a dash back to anywhere close to the highs of the day but the markets have shown resilience.
A: Yes, that is right but the fact is that the morning highs in the Nifty have not been maintained and we could see choppy conditions. This is not a call for a bear market; far from it. It is just intraday and short-term traders can focus on stocks and let the index be.Q: We have spoken about ITC repeatedly over the last several days but what is your call on this stock given the big up move that it has seen today?
A: If we ignore the big move, the trend is up although it is underperforming. That underperformance will continue and the chances are it will keep on going up. So, it is not going to be a laggard; that part is not there. Every dip in ITC is an opportunity but Hindustan Unilever (HUL) will still be far better off.
Q: This week we have seen midcap index outperform by a good 3.5 percent compared to Nifty. Anecdotally what is that telling you about the state of the market given the fact that for the last two-three days the Nifty has been volatile as well?
A: It tells us that a top is imminent. But this market is not giving us easy answers and it just means that midcaps go through these mini bubbles and then they go through a period of consolidation and relative calm and quite. That mini bubble phase is almost there. So, for the next few weeks midcaps will underperform and that is the time when you want to enter it and you want to get out and sell out now.Q: Punj Lloyd has moved up 8 percent or so, are you tracking that one? It’s been a big gainer this week.
A: I came out of the list many months ago. I am not tracking it.Q: What are you seeing on the crude charts? Are you seeing a degree of stability now on prices globally?
A: It just is a pause in an ongoing downtrend. So the pause is not enough to suggest that the downtrend is over which means we have to either remain bearish or stay away. We cannot make a bullish call.
Q: In terms of stocks that you are looking at for the next week or so what would you identify as your ‘to watch to buy’ list?
A: For the next week or so I would still be looking at IT, pharma and financials. These are the three sectors that are likely to continue and the theme is by the end of this month the Nifty should be higher than where it is now.
Q: MRF, we spoke about it yesterday, today also at one point it was up 5 percent but ended in the red. Is that a warning sign or is that par for course?
A: No it is not a warning sign; it is just a matter of chance. After all stocks will correct, it is only a correction. If this is a bull market then MRF is going higher. So, any reasonable dip is still a buying opportunity.
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