In an interview to CNBC-TV18, Nipun Mehta of Blue Ocean Capital Advisors, Dilip Bhat of Prabhudas Lilladher along with Rahul Mohindar of viratechindia.com shared their outlook on various stock specific bets and the road ahead for the market.
In the recent past, market has witnessed a major run up. However, experts believe that the Nifty will now see big bouts of resistance.
Bhat feels NPAs continue to remain a concern for all banks yet the asset quality is very different between public and private players. While PSU banks are still muted, private sector banks look good in the near-term.
Meanwhile, Mohindar prefers largecaps. He advises investors to shy away from technology stocks and those from oil and gas space.
Below is the verbatim transcript of Rahul Mohinder's interview:
Q: Interestingly when we asked you for your picks you went with large-caps. So is that the indication of your belief in where the Nifty is going to go because till yesterday we had people preferring to play short-term call in the midcap if they were going a long?
A: There are two factors that go into my thinking one is that you have seen a major market run up and it is time to probably be a little cautious get a little conservative. On the Nifty, we are going to see big bouts of resistance as we approach that 8,500 level now. In a percentage basis we are not very far away from that and which is why I tend to get very selective.
Q: You picked Reliance Industries and HDFC Bank, both of whom have pretty heavy weightage in the Nifty so they are to go up you are going to see the Nifty go up as well?
A: The next four or five percent on the Index or the stocks and I am really talking very short-term if positive. So from a trading perspective these stocks are looking very good. But would have buy them for the next 15 to 20 percent right away I don’t think so.
Q: In terms of midcap what do you think is going to give better returns from hereon? Would it be high beta names like GMR Infrastructure, Suzlon Energy, GVK or would it be relatively safer bets like Arvind, Apollo Tyres which have done well also this year?
A: Out of the stocks that you named Arvind and Apollo Tyres two which of have really done well and they still have more momentum to go. Again I won’t say that there is a huge bout that I am expecting here. However, these would be the safer ones to be with. I still feel that when you look at some of the midcap banking names you could have good short-term momentum and when you look at some of these selective midcap pharma names as well there too I would be interested. I would tend to stay away from technology stocks, the oil and gas space so it is got to be very sector specific as well as at this point in time.
Q: A word on cement stocks they did quite well today Ambuja Cement in particular up above 2 percent again been an underperformer compared to its peers but how would you trade it?
A: I don’t see major breakout on the stock but I have to admit may be we are heading to about Rs 240 in terms of a price target so even from here there is a headroom so keeping a stop loss at Rs 218 which I see as a medium-term support levels one could be trading into Rs 240 and for that matter even ACC as I said it all looks like the next five to eight percent looks fairly clear and some of these heavy weights including cements so should be good going through for a next couple of days.
Q: In terms of this midcap PSU banks chart which one looks good to you because there are varieties of stocks over there?
A: Amongst the banking names, Bank of Baroda is a stock I like despite having run up quite a bit. I am positive on the short-term and I like to look at this as an opportunity where you would really get into the momentum get the next five to ten percent so Bank of Baroda would selectively be one stock. Infrastructure Development Finance Company (IDFC) would be a second that I like amongst the financials and if I had to go down the list may be Karnataka Bank another stock that can suddenly start performing so these would be the three stocks that I would look at within the sector.
Q: What are your thoughts on couple of these large-cap names one is Bharti Airtel which has again gone into no man’s land and the other is Coal India almost going through the same process?
A: I am a little worried with Bharti Airtel particularly the stock is not been able to stay above Rs 395 which was a key level so even today closer to Rs 390-395 we saw that pressure coming. Somewhere around Rs 360 is where the stock is heading too. So in the near term I would be negative on Bharti Airtel so that would be a sell call. At this point in time as I said there are some stocks which do look negative even within that frontline set and that would really move towards technology, telecom these are the kind of sectors which I would be a bit worried about.
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