Sensex, Nifty may trade in a range this year: Experts

AHMEDABAD: Experts at ET NOW’s ‘Buy NOW Sell NOW’ workshop said the Sensex and the Nifty may remain range-bound this year and volatility with downward bias could continue to rule the roost on the market. Financial experts Amar Ambani , head of research-India private clients, IIFL and technical expert with ET NOW Sudarshan Sukhani , provided insight into key highlights of the Union Budget organised on Saturday in Ahmedabad.

Sukhani advised investors to enter the market only when it’s on the upswing. “Never invest in stocks when they are going down or when they are doing nothing. First observe whether they have formed the base and if smart money is moving in. Only then enter,” he said. The consensus that emerged out of their observation was that if you believe in the India story, you must invest in the stock market.

“We are in long-run bull trend and the India story can help the Nifty reach levels of 12,000-15 ,000 in the future,” Sudarshan Sukhani said. Ambani said: “Despite all the headwinds, India is the best place to put funds in.” “We have seen the Nifty climb from 2200 levels to 6300 levels. Historically , it normally corrects 50%. But if the Nifty convincingly breaks 5600 levels, we may see an upward rally,” Sukhani said.

Ambani, on the other hand, firmly believed that we are in a bear market as far as mid-cap and small cap stocks are concerned. “Though the Budget is mildly positive , issues like projected fiscal deficit of 4.6%, heavy dependence on good monsoons to rein in food inflation, rising oil prices globally , scams and IIP numbers are weighing heavily,” he said. The experts also gave their sectoral and stock-specific picks for the year to come.

While Ambani was positive on auto companies like Bajaj Auto , M&M , Radico Khaitan , FMCG firms like ITC , banking and financial institutions like SBI , YES Bank and metal pack stocks like Sterlite and Tata Steel , he was neutral on cement, oil & gas, telecom and other metal and mining companies. He asked investors to stay away from real estate and mid-cap IT companies.

However, he felt the Infosys scrip could see better days on improving global economic recovery, especially from the US. He also advised investors to put money in RIL, Petronet LNG, OnMobile Global, L&T and REC. Meanwhile, Sukhani said technically, fertiliser, PSU banks and financial stocks were looking stronger.

He advised investors to consider buying in to RCF, GSFC, Chambal Fertiliser, SBI, PNB, Syndicate Bank , LIC Housing and IDFC . He also advised investors to stay away from hotel stocks like EIH , Asian Hotels, Taj GVK Hotels and retail and real estate stocks.