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Nifty can fall 5-7% more; crude slide on last legs: Sanger

Sanger sees the Nifty slipping below 8000, and says he will use the opportunity to selectively buy stocks. He says crude prices are unlikely to fall below USD 40 a barrel

Arvind Sanger of Geosphere Capital feels the Nifty easily has room to slide another 5-7 percent because of adverse Nifty cues. He sees elections in Greece, a likely exit of that country from the European Union and concerns over a possible rate hike in the US as the major factors weighing down global markets in the short term.

In an interview to CNBC-TV18, Sanger says a failure on the part of theEuropean Central Bank to deliver on Quantitive Easing (QE) and a possible victory for the opposition part in Greece could undermine sentiment further.

He says the market will be closely watching the minutes of the last Fed meeting, to be released on Thursday.

Sanger sees the Nifty slipping below 8000, and says he will use the opportunity to selectively buy stocks he is bullish on.

He says the government is getting active on the policy front, even if right now it is taking an unconventional route that is not sustainable in the long term. Also, he says that some data points are suggesting that the Indian economy is turning around.

However, he says he will be patient and not buy aggressively till the election in Greece later this month are over. That could be a trend driver either ways, he feels depending on the results.

On crude, Sanger says he would be surprised if prices fall below USD 40 a barrel. He feels the slide in crude prices is on its last legs and that crude could bottom out after another 10-15 percent more decline.

He says strengthening dollar is a bigger headwind for the market as it immediately translates into risk off.

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