Nitin Raheja, CIO, Rada Advisors, says it is difficult to take a call on which direction the market it going and so once again the focus should be back on bottom-up stock picking.
According to him an intermittent top for the market could be in place. Currently, we could be seeing some profit-booking when the market is waiting for global cues like the Brexit, Fed decision and even RBI monetary policy.
He thinks the Fed rate hike is already discounted but the commentary remains key, and if that is hawkish then markets may correct.
Domestically, the RBI governor is under pressure to cut rates, so there could be some moderate tweaking.
On the issue whether the term of Raghuram Rajan will be extended post September, Raheja said all the earlier RBI governors have been good at their job and governments have known to appoint capable people. So, even if Rajan does not get an extension, it would not impact the market in the long-term.
When asked what sectors and stocks he would now focus on, he says he is upbeat on the whole auto space on back of an uptick in the GDP number and expectations of a good monsoon. He particularly likes two-wheelers, commercial vehicles and the tractor space.
There are also spaces like oil and gas, pharma, private financials where one could find value, says Raheja.Technical Analyst, Prakash Gaba of prakashgaba.com also shared is stock-specific ideas.
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