Be very cautious: Ajay Parmar, Emkay Global Financial Services

Ajay Parmar, Head of Institutional Research, Emkay Global Financial Services in an interview with ET Now talks about the market outlook.

Thursday morning, how are you feeling? Bullish, bearish or confused?

I feel that we have to, definitely, go through the pain. My view is to be very cautious and I believe you have to look at the individual stock ideas than just to look at the macro and all. But yes, we as an economy are having some headwinds, also globally there are issues.

This earnings season is also going to be little volatile, I would say little muted. Definitely, market may not move up to the extent to which people are expecting. Of course, we have seen liquidity base rally in the last few days where for the entire calendar year FIIs were almost absent, as against $ 28 billion pumped in last year. Even $ 1.5-$ 2 billion money coming in has taken the market up by 5%.

But if this QE3 happens than what are the chances of DM to EM kind of money flow coming in. So to some extent I am also confused but I believe we have to take a certain stock specific calls and this will be stock pickers market and this year will be little difficult to sail through.