See new market high in mid-January: Ambareesh Baliga

In an interview to CNBC-TV18, Ambareesh Baliga, an independent analyst gives his predictions for the market. Baliga expects a new high in mid- January. "Once we have crossed 6000, then I would suppose it will be a very fast move to a new high," he adds.

On concerns of the US fiscal cliff Baliga says the market performance is now dependent on the deal resolution. He opines if the deal takes place and if it is viewd positively, the market will perform accordingly. "If not, then the market will be subdued for a while. It will only delay the rally. So, we should wait for the next one or two days to see as to what happens," he adds.

Also read: Boehner urges Senate to act on 'fiscal cliff'

Below is the edited transcript of Baliga's interview to CNBC-TV18. Q: Expiry seemed to closed up okay for the market, but how do you think the next few days will be by the time we get into the New Year?
A: The next few days will clearly depend on the resolution of fiscal cliff. If that is positive, yes I think there will be a breakout. If not, then the market will be subdued for a while. It will only delay the rally. So, we should wait for the next one or two days to see as to what happens. Q: What did you make of the CARE listing and where do you think that stock will stabilise at over the next couple of weeks?
A: As expected, it opened at about 25 percent premium. The way I see it, it should move more towards Rs 1,050-1,100 mark over the next couple of weeks, not the next two or three months. Q: Any thoughts on PC Jewellers? How do you think the stock might list and move from here?
A: It will list more or less flat or possibly at a small discount. I really do not see too much of movement immediately for the stock.

Q: Do you see this strength in real estate stocks going into January as well?
A: I suppose it will continue for a while longer, but it is basically the Bangalore based ones which will do much better than Delhi NCR, Mumbai region stocks. One should look only at the south-based companies if you are talking of the next three or four months. Q: How do you approach Kingfisher Airlines now? The expiry of their license is four day away?
A: It is still a sell at these levels. We have seen that movement from Rs 10-11 to closer to Rs 16.5-17. I do not see a revival or an investor coming in, so I think at these levels one should take that opportunity and exit before it is too late. Q: What kind of mid-caps are you pushing to your clients going into January? Can you think of three or four names which you think has a lot of upside in the near-term?
A: Auto ancillaries like Ceat and Exide have been pushing for a while. I expect a decent move in January and February. Himatsingka Seide is the other one which I think is a turnaround case. It should see levels of about Rs 60-65. ILFS Transportation is the fourth one which I think should see a good move in 2013. Q: We have got lots lined up come January. It will start off with earnings, then there is an RBI policy and ofcourse there are global cues. What probability are you still attaching for the market getting to its previous highs?
A: Quite high. January should see a new high. I suppose that should be more towards the second half of January. Once we have crossed 6000, then I would suppose it will be a very fast move to a new high.