See Nifty at 9300-9600 by Dec 2015; negative DLF: Jai Bala

Vivek R Misra, strategist - Asian equities, global research and strategy, Societe Generale, on the other hand expects the next two quarters to be volatile on the back of the US Federal Reserve raising interest rates. He expects the first rate hike to come in September.

But 12-months ahead, Misra sees the Indian market up rather than down. But over the next two quarters, he says the Nifty can head to 8100 level but not lower. According to him, investors should take this as an opportunity and start buying if the Nifty heads to 8100 level considering the outlook for Indian equities is fairly good from a 1-2 year view.

From hereon, Bala feels the market needs to see good breadth and volumes pickup. “Looking at the move from 8505 to 8185, the move looks structurally incomplete but it is a 50-50 at this point. However, from a longer term perspective, 8185 to 8125 is the minimum required price correction that we had been anticipating from the beginning of March,” he says.

Domestic cues that led to market fall:

Keeping global issues aside, Misra says valuations on a headline level had become expensive. Other than that a lot of investors had elevated hopes of fast policy change, he adds. Coupled with that, earnings and the economy haven’t picked up as much as expected.

Sensex, Nifty year-end target:

Misra's Sensex year-end target is 32500. He expects to see weakness throughout Asia over the next two quarters, but post that he says there will be a pickup. In these two quarters, he expects the large caps to do better, but post that midcaps are likely to outperform large caps.

Bala sees the Nifty at 9300-9600 by December 2015.

Sectors and stocks to watch out for:

Misra is bullish on cyclicals - sectors such as banks, industrials and consumer discretionary names.

Bala on the other hand is focusing on non-index stocks and likes Aban Offshore, Bombay Burmah and LG Balakrishnan. He is rather negative on DLF and cautious on the capital goods space.