Market At An Equilibrium: Shrikant S Chouhan, Sr. VP-Research, Kotak Securities

With 2013 drawing to a close, people are all set to welcome the new year with much enthusiasm. Let us know from a market expert himself what the new year has in store.

In an exclusive chat with DSIJ, Shrikant S Chouhan, Senior Vice President-Research, Kotak Securities shared his views on the markets’ behaviour for the year end and the new year 2014. "The market is at an equilibrium level of the last overall run up of the market because we have seen run up from 5500 to 6400. Currently it is at 6100. So it is at the medium part of the market”, Chouhan said. “But broadly, we are of the view that the markets are very bullish and if any correction comes, it would be because of two important events – one, the outcome of the FOMC meeting and two, the credit policy”, he added.

As for the future course, Chouhan opines that, “Right now, the bias is negative. We are expecting some negative outcome from these events, and in case that comes and if the market tanks because of that, it presents an opportunity to buy. The market is broadly expecting the BJP party to win in the general elections. Because of this euphoric expectation, we can expect a rally. So there is a chance that the market may slide to 5800 at the most, but from there it will try to bounce back again. In case it doesn't, if the negatives do not show up, we can see the levels of 6500 or 6700 by the end of January".

Chouhan feels that this particular market is trading at its crucial levels. Talking about sectors and stocks, he notes, "We are expecting activity in technology stocks and they are certainly going to do well at least in the next 12 months. But old economy stocks – that is stocks related to metals, capital goods and engineering – may also attract value because this time we have seen very good volume activity based on technicals in all these stocks".