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Nifty may hit 16900 by July-end; auto, IT sectors valuation attractive, buy SBI, ICICI Bank | IIFL Interview

NSE Nifty 50 index may have hit bottom at 15200, and now it looks set for a 10 per cent upside by July end, to move towards 16700-16900, Sanjiv Bhasin, Director, IIFL Securities

Nifty, sensex
Sanjiv Bhasin also recommended a few sectors and stocks that can be picked in a falling stock market scenario to pocket gains.

NSE Nifty 50 index may have hit bottom at 15200, and now it looks set for a 10 per cent upside by July end, to move towards 16700-16900, Sanjiv Bhasin, Director, IIFL Securities, said in an interview with Surbhi Jain of FinancialExpress.com. Bank Nifty could reclaim 35000 levels. Owing to monthly F&O expiry on Thursday, 30th June, Nifty is likely to witness high volatility and trade in 15600- 16200 range. Sanjiv Bhasin also recommended a few sectors and stocks that can be picked in a falling stock market scenario to pocket gains. Here are edited excerpts from the interview.

What are the key themes to invest amid the current market scenario?

 key themes to invest amid the current market scenario could be auto, banks, infrastructure & IT, as contrarian with weak Rupee helping margins & guidance from Cognizant indicating no slowdown in IT budgets. 

With BSE Sensex, NSE Nifty down over 10% each on YTD, is it time to buy?

Yes, as most bad news in the form of higher bond yields, spike in crude oil & trade imbalances due to Russia-Ukraine war are getting priced in.The chances of recession in the US have a 50:50 probability but Indian stocks seem to be in the best shape as consumption spending, increased capex expansion & credit growth from banks all seem headed north.

Where do you see Nifty 50 and Bank Nifty in near to medium term?

Near term as indicated last week we may have hit bottom @ 15200 & look set for a 10% upside by end July towards 16700-16900 on the Nifty while Bank Nifty could hit 35000.

What are the key levels to track in Nifty 50 this week?

Due to expiry of contracts for derivatives this Thursday expect higher volatility with 15600 to 16200 being the range.

At current levels, are we in a volatile market or a bear market?

Volatile in Indian context as Nifty finds very strong support around 15200 with mid caps seeing a bear market but looking set to rebound from it. Auto sector is hitting fresh new highs with stocks like Mahindra & Mahindra (M&M), Ashok Leyland & Maruti Suzuki India trading @ 18000 index levels while IT stocks trading lower by over 25% from January highs

How to pick stocks in falling markets?

Pick the winners like auto, select banks & IT as valuations become attractive. Some recommendations for the next 2 months would be SBI, ICICI Bank, L&T, Persistent Systems, HCL Technologies & Aarti Industries.

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