Sandeep Shenoy of Anand Rathi Financial Services also talks about how the Nifty is likely to behave ahead of elections.
Sandeep Shenoy of Anand Rathi Financial Services talks about the broader market. He believes Nifty will continue to be rangebound for time being and will see support between 5900 and 6000 on the downside. He also talks about how the Nifty may possibly behave ahead of elections.
Below is the verbatim transcript of Sandeep Shenoy's interview with Latha Venkatesh & Reema Tendulkar on CNBC-TV18.
Latha: How are you approaching overall markets? Do you also believe that we could look at 6,000 as reasonably well protected?
A: We were always of the opinion that somewhere between 5,900 and 6,000 would be the market’s bedrock at least for the time being because that is where we are moving towards the last quarter of the financial year and the numbers flow till now – most of the large numbers have come and they seems to be more or less bang on line and we could be headed for 12-13 percent kind of a growth on bottomline front.
Yes, that is going to be one of the strongest support lines both on number basis as well as on forward looking basis but I think you have about six sigma events; the election just round the corner, the level could be tested couple of times or maybe the market could be stagnating at current levels because the next quarterly numbers which probably could be triggered are going to be spread well over 60-90 days. So yes, we are headed for some prolonged period of stagnation but these levels are definitely going to hold. There is no indication that these levels could be breached at the current juncture.
Reema: Elections are still about three-four months away – that trigger is out of the way, so in that period up until the elections how should retail investors be looking at the equity markets and playing them?
A: If you look at the volatility, it is going to be accentuated more and more because the event which is the election, which probably could be 90 days from here - we are foreseeing that the more safer sectors to remain in and the numbers flow have borne out that fact - IT definitely remains and healthcare is slowly and steadily exhibiting much more stability than what people envisaged it to do.
Auto has been a mix bag, domestic play but despite all the naysayers auto has also given good amount of number. So, these three sectors would be the ones which will give some kind of resilience from volatility, which the market is going to face. I think beyond that one should not be adventurous and try to move into midcaps because there is probably a good chance that there could be a sucker’s rally building out there and the investors as usual will be at the receiving end of that.