Kashyap Pujara of Sushil Finance believes the markets are still extremely attractive from a long-term perspective. But he does not deny that owing to global pressures and the rupee-dollar equation turning adverse, there could be short term pressures in the markets.
Pujara feels 2950 is a strong support for the Nifty, while 9800-10,000 is the support zone for the Sensex. He also gives his picks from the frontliners.
Excerpts from CNBC TV18's exclusive interview with Kashyap Pujara:
Are you shorting the Nifty right now? What would your advice be to both long-term and short-term traders?
We are not bearish on the market, so there is no question about shorting the Nifty. We are not shorting the Nifty. One thing is very clear from a longer-term perspective that markets are extremely attractive. From a trading perspective, since the global situation is slightly nervous and the rupee-dollar equation is also turning adverse, I think there could be short-term pressures.
But overall, if one considers a 12-month view on the Indian economy, ultimately stock prices have to mirror the performances, which have been delivered. So if the economy is growing, the companies are going to perform and stock prices will ultimately end up reflecting that.
Over a 12 months horizon, this entire situation will get corrected. So these are probably the prices at which one can look at investing and there is no question about panic selling at this juncture.
You did mention the fact that over a one-year time horizon, we are looking at a bull phase on the markets, but short-term intermediate rebound on the markets. When do you see that happening, and what is the likely trigger to bring about the U-turn from these lower levels?
My range for Nifty was 3080 downside bottom and I think probably that has been broken. Closer to 2950-3000 hopefully, one can expect some reverse, because we have strong support zone at 2950 for the Nifty. On Sensex, 9800-10,000 is very strong. I think one can consider a bounce back from those levels.
But ultimately one has to reframe trading in such markets, which are extremely choppy. It can get very treacherous to take a short-term call on this market. But overall, this is the right time to look at investing from six-eight months perspective.
Is this the right time to pick up stocks or do you think it's a 'wait and watch' policy that one should adopt?
It seems that everyone is on the sidelines, waiting and watching. That is reflected in volumes. Our markets have fallen initially on lower volumes. Participants do not have as much confidence, so that is the reason for downside that has come.
But overall, one should look at buying, because if everyone waits on the sidelines, then it is not going to end. But overall from a 12-month's perspective, there is no reason why one should panic because we are still one of the fastest growing GDPs in Asia.
Any stocks that are looking purely attractive at this point in time at these levels?
There are many stocks, which are looking attractive. In the cement pack, Grasim Industries, Gujarat Ambuja Cements look attractive. In metals, Hindalco Industries looks attractive. In IT, Infosys Technologies and TCS look attractive.
So there is a lot of price value diversions in the frontliners now, which are in favour of the investor.
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