Support at 4400-4600, Balrampur, Bajaj Hindustan, IDFC, Wipro good picks: Sheshadri Bharatan, Investment Analyst
Here is Sheshadri Bharatan’s view on the markets for today.
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| Here is Sheshadri Bharatan���s view on the markets for today.
Are you really taken aback by the kind of swings that we saw in just two sessions?
It was expected. From the peak, we have corrected 12% and from that we saw the bounce back yesterday.
But the bounce-back was fairly strong?
Yes, fairly strong because when the markets were falling down one clear notification that you would have seen is that the volumes were pretty large - like 130,000 crore, 150,000 crore - and what this means is that there were lot of shorts which got created in the market.
When markets fell on Friday, and I think yesterday when they went up, there was lot of short covering seen primarily in the frontline stocks like Reliance Industries, ICICI Bank, etc. This led to the recovery in the markets yesterday. So, my sense is that another point that I would like to highlight here is that post-election results, we saw lot of buying happening around 4400-4600 Nifty levels, so I think around these levels, we will see markets taking lot of support. What we might see is from here, markets might correct to certain level and from here again markets might bounce back.
Your buy calls this morning Ranbaxy, Bajaj Hindustan, Balrampur Chini, Wipro and IDFC?
Definitely if you look at, again there are two sugar stocks, Balrampur Chini and Bajaj Hindustan. There is a clear demand supply gap, and I think going forward, we would see that these sugar stocks will have a pricing advantage.
As far as Ranbaxy goes, again we should see their last year���s results, close to Rs 800 crores was their forex loss and I think in this stable forex environment this company will do well. We have seen that after posting two quarters of operating losses, company has recovered, again has posted operating profits, so again Ranbaxy is a good pick.
As far as Wipro goes, we have seen that results have been fabulous and with the improving environment in the western economy, be it Europe or US markets, I think Wipro is one company, which will benefit a lot from the order flows, especially BFSI segment.
IDFC is one company where we feel that with the emphasis on infrastructure growth in India, I think this is one company where I expect that the loan growth book would be around anywhere between 20-25% year on year for next three years time.
Are you really taken aback by the kind of swings that we saw in just two sessions?
It was expected. From the peak, we have corrected 12% and from that we saw the bounce back yesterday.
But the bounce-back was fairly strong?
Yes, fairly strong because when the markets were falling down one clear notification that you would have seen is that the volumes were pretty large - like 130,000 crore, 150,000 crore - and what this means is that there were lot of shorts which got created in the market.
When markets fell on Friday, and I think yesterday when they went up, there was lot of short covering seen primarily in the frontline stocks like Reliance Industries, ICICI Bank, etc. This led to the recovery in the markets yesterday. So, my sense is that another point that I would like to highlight here is that post-election results, we saw lot of buying happening around 4400-4600 Nifty levels, so I think around these levels, we will see markets taking lot of support. What we might see is from here, markets might correct to certain level and from here again markets might bounce back.
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Your buy calls this morning Ranbaxy, Bajaj Hindustan, Balrampur Chini, Wipro and IDFC?
Definitely if you look at, again there are two sugar stocks, Balrampur Chini and Bajaj Hindustan. There is a clear demand supply gap, and I think going forward, we would see that these sugar stocks will have a pricing advantage.
As far as Ranbaxy goes, again we should see their last year���s results, close to Rs 800 crores was their forex loss and I think in this stable forex environment this company will do well. We have seen that after posting two quarters of operating losses, company has recovered, again has posted operating profits, so again Ranbaxy is a good pick.
As far as Wipro goes, we have seen that results have been fabulous and with the improving environment in the western economy, be it Europe or US markets, I think Wipro is one company, which will benefit a lot from the order flows, especially BFSI segment.
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IDFC is one company where we feel that with the emphasis on infrastructure growth in India, I think this is one company where I expect that the loan growth book would be around anywhere between 20-25% year on year for next three years time.
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