With the market posting a rally after the weakness seen on Wednesday, the big question is whether the texture of the market has changed? It was a day where neither the bulls nor the bears had an upper hand.
Dipan Mehta, Member of BSE and NSE, believes that the corrections seen in the last few days are just minor ones in an up-trending market. From an earnings perspective, too, there have been more surprises than disappointments. Also, going forward, if some of the key Sensex and Nifty companies like Larsen and Toubro and Tata Motors come out with decent set of numbers then the sentiment will improve further.
Moreover, if monsoons are on time and as per expectations then the market is set for a 5-10 percent appreciation over the next 3-4 months both in the Nifty and Sensex.
He is upbeat on FMCG companies not only for the current quarter but for the next few quarters too and if monsoons are good it will boost their margins further. Emami, too, will report good numbers for the quarter gone by, he adds.
Eicher Motors, he believes, is firing on all engines and is a secular growth story. Whenever there is opportunity or correction one should buy into the stock or add more exposure.
As a disclosure, he said, his clients and himself are invested in the company.
Global cues, too, supported the market today, as most markets were up one percent followed by good domestic earnings from the midcap spaces from the likes of Castrol India, Eicher Motors.
Sudarshan Sukhani of s2analytics.com said the market is in an uptrend which is intact and it is unlikely that corrections will change the primary trend. Investors should look at buying blue chips.
It was not a sell on a rally market but neither is there a pattern which justifies buying the index, said Sukhani, adding that maybe the market is beginning to gear up for an upmove.
However, there is enough evidence to buy stocks like Maruti Suzuki, Bajaj Finance and Ajanta Pharma.
One can buy Maruti on every dip and every breakout. By year-end it could go to Rs 4,700 or more. Buy Bajaj Finance as it is consolidating and is on verge of another breakout. Buy Anjanta pharma because so far it has had big rallies, small consolidations and subsequent breakouts.
All three are portfolio trades and worth buying into.
Ashwani Gujral of ashwanigujral.com says it is clear at around 7700; the selling momentum is dying down but this does not justify buying. Unless there is strong buying where Nifty breaches 7830, it will remain range-bound. Probably next week when some serious buying comes, we will see sustained trend. The small pullback seen today just shows that the buying which is happening is just short covering or weak buying.
Only when Nifty rallies 100-150 points and Bank Nifty rallies 350-400 points, one can say the buying is back.
Gujral is upbeat on the whole of the cement pack and one should buy into corrections. The next rally in them could see gains of around 20 percent, he added.
SP Tulsian of sptulsian.com is of the view that the current volatility is neither healthy for the bulls nor the bears and there is no direction for the market.
Stock specific he is bullish on Gillette India, Eicher Motors. From the cement pack he prefers UltraTech Cement and Shree Cements. He is also upbeat on Nucleus Soft and V-Guard Industries
In the same interview Prakash Diwan of prakashdiwan.in shared his views on Castrol India, Eicher Motors and other stocks.
He is bullish on Castrol and advises buying even at the current levels of around Rs 408. He says companies that have invested in efficiencies have been reporting good numbers and the next few quarters could be dramatic for companies like Castrol. Moreover, if two wheelers do well going forward, it will benefit Casgtrol, too.
Eicher Motors he said will continue to generate wealth for investors even from current levels.
He would also look at stocks like Gati and Kansai Nerolac which have not been rewarded despite the decent set of earnings.
He also bullish on Maruti Suzuki.Meanwhile, Mayuresh Joshi, Fund Manager, Angel Broking said that consolidation of market is the theme for the month of May but one could expect a postiive start for the market tomorrow on back of the Bankruptcy Bill passage. However, from there on volatility would direct the market.Talking about the news of RBI releasing the discussion paper on 'on Tap' licensing of Universal Banks, Joshi says NBFC stocks may rally tomorrow.
For more on their stock specific ideas, watch video.
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