Markets likely to see new highs in next 1-2 months: Deepak Mohoni, trendwatchindia.com

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about the markets.

We have had two days of a touch-and-go moment with 5400. Does it seem like it can hold above that level or perhaps even build on from there onwards?

The 5400, even if it dips back a bit, would not be too significant. But what’s happening now, which is highly relevant is that we have been in that range for the last 8-10 months. It looks like we are on the verge of breaking out and perhaps catching up with those 21000 and 6500 levels we saw in 2008.

You were making a point about the index, what’s it? Also, what’s the call on the Infosys stock?

To start with the indices, we had a correction in intermediate downtrend which ended a couple of days back and now that was a very mild correction. The Sensex hardly corrected 500 points, the usual corrections were 2000 points. So this has been a mild downtrend and we are now back in an uptrend and the all-time highs - if you take the 2008 peaks - are barely 15-16% away which is what you reasonably get out of any uptrend.

So the chances are very good now that we will see in the next month or two months, brand new highs or getting very close to those old highs for all the indices.

What’s your call on just the broader market, the mid-cap IT space especially, which is getting active?

They certainly are now leading the momentum pack. If you take sector stocks like Rolta, Polaris, Tech Mahindra, Mphasis, all these are really quite running away with this move. They are the potential candidates for the highest gains in the next two or three weeks in my view.