Nifty At 1-Year High: Time To Book Some Profit, Says Geojit Financial Services
Gaurang Shah of Geojit BNP Paribas thinks a correction is round the corner.
“It’s time to take some profit off the table.” That’s the word coming in from Gaurang Shah, head investment strategist at Geojit Financial Services, after the Nifty 50 index touched a fresh 52-week high. “We have been steadily going up for the past couple of weeks. I think a correction is due and it will be only healthy if that happens,” Shah told BloombergQuint in a phone conversation.
Shah expects the correction to take place within the next few days, before the assembly poll results are announced. “Common sense tells me it is only prudent to take money off the table possibly today or early next week,” he said, to capitalise on a sharp drop in the indices, in case the results throw up a fractured mandate.
His sectoral picks include financial, software service providers, and the classic defensive like pharmaceuticals and fast moving consumer goods companies. He is selectively optimistic about some automobile companies.
“Nifty should remain between 8,860-8,820 and worst case 8,680,” he said adding the index could touch 9,500 easily if there is a decisive mandate in the Uttar Pradesh elections.
Reliance Industries: The Real Test Starts Now
Reliance Industries Ltd. posted its steepest rally in eight years after its telecom unit announced plans to begin charging for telecom services from April 1, 2017. “It was great to see the old dark horse make a comeback after a lull of almost nine years,” Shah said.
Shah is not in a hurry to revise his targets just yet, choosing to rather wait and see how many Reliance Jio subscribers make the transition to the paid service, before taking a call on the stock.