Nifty may surprise on downside; bet on pharma IT: Jai Bala

Below is the edited transcript of Jai Bala’s interview with CNBC-TV18

Q: Is the market giving you a sense of warmth? Do you think that the 6200 looks set to perhaps breach the all-time highs of 6370 sometime in the next few weeks?

A: The market is going to get a bit choppy. It is not entirely clear if the all-time high is going to get taken out, but we got to be very careful because this is a treacherous market. I remain bullish on pharma, autos and IT selectively.

Q: How will you draw the chart of the index from hereon? Is it likely to remain in 6000 or maybe 5950-6350 range? If you were to draw the charts how do they look over the next 4-5 weeks?

A: The market is equally poised to either take out 6358, the all time high or go below 5970. The problem I see is that if it goes above 6358 I do not see it sustaining for too long, because there are footmarks of what seems to be like an ending move. It could exceed 6350, stay above it for a few days and then start coming down.

I need to see more strength in the market in terms of broader participation from front-line stocks and broad market stocks. The market could also surprise on the downside. That is the reason why I am sticking with the strong sectors. I do not think it is going to be a range. Either it is going to breakout above the all-time high, go above it and stay there for a few weeks and then starts coming down or it is going to straightaway giveaway.