A couple of weeks ago, when the market was sideways to negative and people were fretting, you had said it’s a matter of time before 16,000 gets taken out. That level was taken out today and large caps are powering ahead. A lot of stocks like Tata Motors, Bharti Airtel, are coming back. What are you betting on?
I had said Nifty will touch 16000 by 31st July. I missed it by three days but it is a tribute to both the hockey teams who have reached the semi finals and made all of us cheer! The Sensex is reflecting that I think. So kudos to India’s men and women’s hockey teams for their performance in the Olympics so far.
The China fiasco, the weakness in the dollar and the globe retail flows which have been the backbone of this market are just telling me that the large caps will need 16000 but the midcaps may take a breather. But that index has already hit an all time high. So, there is a lot of money to be made. We are bullish on India and look at the silver linings.
We have handled the second wave well. Our reopening trade is going to be extremely positive. So, I am gung ho on the market. 16,000 is just a number. Now, focus will be back on India. I am extremely bullish in August and do not rule out another 300-400 points rise before we see some profit booking.
What are you betting on now?
Godrej Properties, HCL Tech, Sun Pharma — three large caps which have been very bullish. Two large caps merit to be bought at current prices with a very good risk reward. First I am bullish on auto and so M&M looks perfect at Rs 755-760 as their tractor sales are robust, their SUVs are doing well and SsangYong being sold off will release a lot of pent up capital.
The second largecap would be the undisputed leader in the insurance space. It has underperformed for two quarters because of Covid provisioning. It is HDFC Life. It is poised to hit you know Rs 850 very soon. HDFC Life will give you stability.
I am also very bullish on some of the midcaps and it is all about entertainment and media. Zee fits the bill perfectly. Zee Channel five and the new launches on the movie side are doing extremely well. So market capitalisation is there. I also like Hero Moto Corp at this price. So these four-five stocks look very good. Godrej properties continues to be my numero uno on the residential side and in banks we should be adding more of Bank of Baroda and SBI.
