Although the Indian equity benchmarks ended with sharp gains, Mayuresh Joshi of Angel Broking expects volatility in the market to continue for the short to medium term. Global cues, political outlook in Greece, price of crude will be some of the cues the market will be keenly watching.
The market gained strength in last hour of trade on Monday with the Nifty conquering 8300-mark supported by banks and capital goods stocks
On the domestic side today’s IIP number could be a key pertinent for RBI to decide on interest rates believes Joshi. Also with the upcoming earnings likely to be on the soft side, he expects the Nifty to trade in a range of 8000 on the lower side and 8600 on the higher side at least for the next month.
Sudarshan Sukhani of s2analytics.com says the only position on the index would be to cut short positions and a strong conviction to buy would only come when Nifty is above 8400.
Stock specific, IndusInd Bank looks good but the trading range in HDFC doesn’t justifying buying. Whereas TCS is more of a hope buy on back of expectations that IT stocks would do well going forward except for Infosys
According to Devang Mehta of Anand Rathi Financial Services the banking space has been a bucket of strength and if the market is going to rise from here or even stay where it is then banks and NBFCs will do better. They would be a good proxy for overall India growth story.
Mehta says, he would keep money for the long-term in some private and PSU banks, and NBFCs would be a pure valuation play.
Answering a query on whether they see more value in HUL , Sukhani said it is a good investment idea although a day trader may keep entering and exiting it but there is no need to book profits in it. However, Mehta thinks although there is more money to be made in HUL, one could look at stocks Bajaj Corp , Zydus Wellness , Emami , which could see substantial upsides from here on as compared to HUL.
On the midcap space, Sukhani urges traders and investors to keep away from Alok Industries and Suzlon Energy .
Neither is Joshi bullish on Suzlon Energy. According to him within the midcap basket one needs to be very stock specific because valuations across sectors within this space have moved into a higher trajectory. Within that space the house is an upbeat on auto ancillary stock like Subros , where there is tremendous earnings potential going forward, adds Joshi.
He also sees substantial earnings growth for the midcap cement pack and likes JK Lakshmi Cement and Mangalam Cement . Stick with those midcaps where valuations look reasonable, he adds.