Ambareesh Baliga, Edelweiss Financial Services believes the next stop for Nifty is 6,400-6,450 which can be achieved in the next two-three weeks. He suggests investors to continue buying, and utilise every correction as an opportunity to buy.
Baliga, atleast from a medium-term look, recommends buying industrials, cyclicals as they are likely to outperform.Also Read: Pair trades look juicy; long IT, pharma, short FMCG: UdayanBelow is the verbatim transcript of Ambareesh Baliga’s interview on CNBC-TV18
Q: Both the central bankers have surprised, the Reserve Bank of India (RBI) already gave us a rally yesterday and today Fed taper has surprisingly pushed a decent amount of green into the Asian indices. How will India react?
A: Both Fed and RBI policy are out of the way. I do not think there are too many road bumps going ahead at least in the near future and so, that clears the path for the indices to move up. Next stop could be closer to 6,400-6,450, which should be achieved in the next two-three weeks. Therefore, one should keep buying and whenever you see a decent correction like what we saw in the past five-six days, it is an opportunity to buy.
Q: What should one buy now?
A: Buy cyclicals, industrials; we have been recommending capital goods, infrastructure, we have been recommending banks for quite a while. These are the sectors to be bought and also metals.
Q: Do you see more upsides in the IT names?
A: There is upside for IT and pharmaceuticals. We have seen decent rally in pharma but other sectors that have not performed in the last two-three years, which have been totally down and out, they would perform better. If one is investing in market, at least in the short to medium-term look, buy sectors that will outperform and those outperforming sectors would be industrials, cyclicals.
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