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Last Updated : Sep 23, 2016 10:39 AM IST | Source: CNBC-TV18

Here are Deven Choksey's top trading ideas

In an interview to CNBC-TV18's Latha Venkatesh & Anuj Singhal, Deven Choksey, MD of KRChoksey Investment Managers Private Limited shared his readings and outlook on market, specific stocks and sectors.

In an interview to CNBC-TV18's Latha Venkatesh & Anuj Singhal, Deven Choksey, MD of KRChoksey Investment Managers Private Limited shared his readings and outlook on market, specific stocks and sectors.

Below is an excerpt of the interview.

Anuj: Fed event is out of the way, Bank of Japan (BoJ) is out of the way and the market since some sigh of relief yesterday. Do you think we are now headed to all time highs?

A: If you look at some of the internals of the market and some of the index stocks in particular you will find that the stocks which are leading the charge currently are the ones like Reliance particularly. The heavyweight stock is driving the market indices up. Reliance for long hasn't being performing and so far as the market price is concerned and with the kind of clarity emerging out of the capital expenditure (capex) program which has got completed for most of the businesses I would think that Reliance would be the one who could lead the charge in the market. So, from that perspective if you look at it Reliance itself has the ability to pull the market up whether it would take it past 9000 immediately I am not too sure at this point of time. But clearly I feel that the Nifty is probably trading in a relatively buoyant zone which would probably mean that 8700 to 9200-9250 kind of level for Nifty is definitely the range in which Nifty is likely to trade.

Also we are seeing some of the positive announcements coming up and I am expecting the announcement on the vehicle scrapping policies and that could possibly give further boost to some of the automobile companies and that could also result into higher amount of portfolio allocations into those stocks. So, certainly few of the counters and with the heavyweights they are suggesting that they could possibly go up in the market.

Latha: Your thoughts, basically the Non-Banking Financial Company (NBFC) segment is running away with nothing holding it back but your thoughts on Bharat Financial?

A: I must say that we don't have the company under cover. Hence I would not be able to give you the kind of price target on this company but overall we see this particular space getting lot of attraction from the investors largely because A: the growth in the microfinance business particularly is showing some amount of robustness. With the kind of digital banking is happening it is going to become more and more predictable as I see it as far as the growth is concerned in this areas of activity.

Investors are allotting larger sum of money into the Banking, Financial services and Insurance (BFSI) space which is now getting expanded with the inclusion of insurance businesses and the stock exchange businesses which are coming up for listing. So, to my mind with higher amount of allocation of funds happening in this space and the companies showing the appetite to grow further with the Qualified institutional placements (QIPs) coming up I would think that this company could also remain in the better interest of investors as far as portfolio inclusion is concerned.

Anuj: You have any thoughts on Adlabs Entertainment? It is an interesting space and of course there is smart money backing it now?

A: The way in which I look at this particular activity and the business you require initially a larger amount of time for your business to come up and stabilise. The company has largely completed most of the projects and with attracting on a sustainable basis the footfalls. So, as a result of which you are basically seeing the predictability of the revenue as far as the business is concerned and that is where you could possibly argue for adding the stock into the portfolio. How much quantum growth it could have in the revenue etc I am not in the position right now to talk about it but the fact remains that the company has started showing relatively a decent set of footfalls in their paths. So, to that extent if you look at it I would think that the business should look better.

For entire interview, watch accompanying video...

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First Published on Sep 23, 2016 10:39 am
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