Markets may remain in consolidation mode; adopt bottom-up approach: Nitin Raheja, AQF Advisors

In an interview with ET Now, Nitin Raheja, Co- Founder, AQF Advisors, shared his views on the forthcoming two-day policy review by the US Federal Reserve. He also talked about triggers that may influence markets in the near term.
ET Now: Thursday's trading session witnessed a bit of short coverings, hopes of an earnings upgrades and even stability in global markets. What is your view?

Nitin Raheja: While we continue to remain positive on the market, you may find investors expressing concerns over valuations and earnings growth. The NSE's benchmark Nifty recently went up to 9000-odd levels, only to see some correction later. It has find some support at current levels.

I would not be surprised if the market consolidates for some more time. The market may probably be waiting for cues from the earnings season. It is because because even as global liquidity remains firm, concerns may elevate over earlier-than-expected rate hikes by the US.

I believe that we will get into a consolidation mode. Hence, investors should follow bottom-up approach to hunt stocks. Even if we come across any correction, these stocks would probably comeback faster vis-à-vis the rest of the markets.

ET Now: Do you think that the US Federal Reserve's two-day policy meet that would be concluding on March 18 would be a turning point for global markets including ours? We may finally hear from the US Fed on how are they looing at the latest batch of US economic data. There are fears that the Fed would move aggressively, when it comes to the interest rate cycle?

Nitin Raheja: It would definitely bring some clarity over the timing of kick start of interest rate hikes in the US. But, investors would be keenly awaiting for results season more than the US Fed review. They would also be interest in the RBI policy stance, which could be little aggressive given that the take off of the economy has been far slower than what most of the experts really expected.

ET Now: Can you share with is some multibagger ideas?

Nitin Raheja: Well we are looking for a NBFC, whose relative size is very small and is focusing on the renewable energy space. We see huge growth in the sector given the kind of targets set for the renewable energy sector. The current government has put out a target of 100-1,000 megawatts for both solar and wind. This is a company in the renewable energy space and we see this as a big growth area which will grow with this whole trend that is happening and we think that is a space that we are very very optimistic on.