Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "Over the last couple of months, the well performing largecaps have underperformed by a very wide margin. Stocks like Sun Pharma and ITC have taken a breather - there are midcaps and the beaten down large caps which have come to the fore. Buying at the present levels, you are playing the treat therefore buying on a fundamental basis you could be disappointed because the performance may not match the elevated valuations at the moment."
He further added, "I think traders ultimately don't form the market, but at the end of it all the market wants to go up because whenever you talk of tapering not going to happen the market goes up sharply. Yesterday you spoke of the Iran deal and market went up sharply. So while the things of the crowd may not change, you may certainly find stock prices going up. So this is a time where traders need to move in bang with the way the psyche is that the market wants to go up, so trade on the long side."
"Among the midcaps we continue to like names like Motherson Sumi. We also like VST Tillers Tractors; a company at Rs 40 crore cash in the books and earnings per share of at least Rs 80 in the current year the stock has gone up by Rs 180 in the last 10 days. We think a price of Rs 850 is a distinct possibility," Irani said.
He further said, "We like Biocon and Balkrishna Industries. Earnings should be atleast over Rs 40 in the current year."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
