Nifty will remain in the range of 5300-5700 for now: Deven Choksey

Deven Choksey, MD, KR Choksey Securities in an interview with ET Now talks about his outlook for Nifty.

Are you with the consensus that Indian markets in the short term have topped out?

Well it is difficult to say whether we have topped out but yes certainly I think there are no headwinds which are suggesting that market would probably have an upside from current levels though intermediate situation you may probably see the market have the tendency to bounce back to 5700-5900 levels.

However, for it to cross above 6300, will have to be because of a very solid reasons coming in which I do not see happening for next two quarters that is still September or so. In my viewpoint I think we are seeing some of the negatives happening much more significantly and that is going to take its toll on the sentiments of the people and the profits of the company as well.

Those things would be the higher rate of interest even as the deposit rate probably makes investors little bit lazy. They will go for bank deposit products much more than coming into the equity kind of a products where uncertainty is large. So to an extent I think we are going to see some amount of negative impact in the minds of investors.

They would not be easily coming into the market. As I see I think we should be staying in the range of 5300 to 5700 at this point of time and probably lower end of the band you would see more traders operating into the market. More because FII traders are largely putting the option bets into the market so you cannot very confidently say that I think it will only go in one direction because at lower levels they may tend to go into the long position on the option side. So that is why I am saying that we may see the buying effect happening at 5300-5400 levels and selling effect happening at around 5700-5900 levels.

With the state elections as well does it seem like the political issues also could take a toll on the sentiment prevalent in the market?

Yes, the knee jerk reactions are certain. Knee jerk reaction could happen because of the state elections outcome. Knee jerk reactions could also happen because of the petro product price hike and if it is going above the expectations of people then probably petro product hike itself could have a larger knee-jerk reaction.

The political part is going to have the little sustained effect thereafter if it is negative on the outcome side. So to a greater extent I think these are not some of the conducive condition for the market to have a smooth run on the upside.