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Budget next trigger for mkt; upbeat on IT, pvt banks: Pros

Market experts Ajay Bagga, Dipan Mehta, member of BSE & NSE and Sudarshan Sukhani of s2analytics.com are not sure why the market on Thursday gave up the gains by the end of the day but feel it could be because of some turbulence in the European markets like Greece.

Independent market expert, Bagga feels Budget could be the next trigger for the market. It could be flat for a few weeks then might witness a pre-Budget rally and then see some sell off post that.

According to Mehta, the market could be witnessing some selling pressure from foreign institutional investors and maybe some domestic investors booking profit. Moreover, the third quarter earnings too did not show any pick up in growth at the ground level for sectors like FMCG, cement. Neither the order inflows for capital goods were promising, says Mehta.

Bagga too agrees with Dipan Mehta that on the ground we are not witnessing any capex growth and the capacity utilisation in the economy is below 70 percent however there is hope that government could do a lot of public infrastructure spending, which could bring back momentum in the economy.

Sukhani says, whenever the Nifty consolidates it becomes a buy. So, he advises short selling the PSBs and buying the Nifty. 8600-8650 is strong support level for the Nifty and 8800-8850 is an established resistance. One will have to wait for Nifty to take out 8850 before going long, adds Sukhani.

Talking about the third quarter earnings, Mehta says although the PSBs disappointed, most of the private banks did well except ICICI Bank . The quarter per se was challenging for most industries since the economic recovery is a bit stretched but whenever it recovers, private banks would perform better. The RBI policy too was a dampener, he adds.

Bagga too feels, private banks will lead the economic recovery. Private banks, autos and cement would quality as good investments.

Sector specific, Sukhani is still upbeat on IT and likes all the top stocks like Infosys , HCL Tech .

for the entire discussion watch video

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