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Nifty to rally 100-150 pts; like logistics space: Experts

Neeraj Deewan of Quantum Securities and Devang Mehta of Anand Rathi Financial Services feel the downside for the market is now capped and it is unlikely to go to the earlier lows.

By closing time, the market today recovered all its losses supported by metals, FMCG and select oil stocks. The Sensex rose 12.13 points to 28516.59 and the Nifty climbed 15.15 points to 8675.05.

Both Neeraj Deewan of Quantum Securities and Devang Mehta of Anand Rathi Financial Services feel the downside for the market is now capped and it is unlikely to go to the earlier lows of 8267. The low it saw could now be the base for the market strengthened by the fact that market recovered its losses even after RBI policy disappointment.

According to Mehta market is now in for good times with participation coming from all quarter – investor participation, sector participation and stock participation. He expects Nifty to rally another 100-150 points from current levels.  

Currently, one can see both the midcaps and smallcaps coming to fore. Earlier IT sector led the rally and the Bank Nifty helped Nifty go to 8500 level, today metals are seen participating. So, leadership wouldn’t be an issue going forward, says Mehta.

Deewan too sees value in midcap space and thinks largecaps are unlikely to rally. Earnings too are likely to disappoint.

Sector specific, both like the logistics space from midcaps. Deewan is upbeat on TCI , while Mehta likes  Snowman Logistics and expects it to do well on back of expected economic growth.

Mehta also prefers  NIIT Tech from midcap IT space that is trading at 13-14 times and expects all the verticals to see good expansion going forward.

From other themes, Mehta prefers  Ahluwalia Contracts which has been his favourite pick. He thinks the company has a healthy order book going forward.

Mehta sees an upside of 30-40 percent for all the above mentioned stocks.

Meanwhile, Deewan likes  SRF where the capex is already completed and expect uptick in sales to boost their margins.

From the auto space Deewan prefers  JK Tyre and says one can also look at real estate space as an investment idea because banks are now likely to pass on the rate cut that RBI did earlier.

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