Market outlook on Zee Business – By Ashish Kyal of Waves Strategy Advisors

Following is the English transcript of interview Mr. Ashish Kyal, Director of Waves Strategy Advisors (www.wavesstrategy.com) had with Zee Business on Markets @ 10 show.

Please note the below has been aired in morning between 10.00 and 10.30 am on 24^th June 2013.

1. What is the overall view on Indian equity market and Nifty?

A. Nifty is in a major downtrend. Indian equity markets are already underperforming world equity markets since start of 2013. This clearly indicates that we are very weak. Also prices have arrived near 5610 level which is extremely crucial. A break of 5610 and close below it can result into severe selloff for move towards 5200 levels. Given the oversold state of market bounce back towards 5700 will provide better opportunity with 5760 as stop on upside.

2. What is your view on Ranbaxy and the company has problems with Mohali plant?

A. Ranbaxy has been in a strong downtrend from the levels of 550. The stock is currently near 335 down on back of query on Mohali plant but a move below 330 can open further downside possibilities toward 270 levels over medium term.

3. What is your view on Punj Llyod?

A. Punj Llyod has strong downside momentum and is probably trading near life time lows. Buying should be completely avoided in this stock and any pullback should be used to create short position. 40 should act as strong resistance on upside.

4. Which stocks would you recommend to the traders?

A. DLF is one of the stock which belongs to very weak sector – Real Estate. We can already see weakness in many real estate stocks like HDIL, Unitech. DLF has broken very important support of 185 on downside and a move below 170 can take this stock towards 160 levels.

IDBI is next stock which I recommend sell as this stock belongs to midcap Banking space which is again very weak. Also this stock has failed to show any pullback and has broken important support of 80. So we recommend selling this stock on rallies to 75-76 with stop loss of 81 and move towards 67 levels.

5. Any stocks would you recommend as buying opportunity in current market for pullback?

A. Selective stocks with defensive sectors like FMCG and Healthcare can provide some buying options. Lupin within healthcare space has shown strong resilience to the current market weaknesses and is trading near life time highs. A move above 800 can take this stock towards 850 levels. Buying should be otherwise avoided in the current market since we are in a big downtrend.

RCom has shown outperformance against other ADAG pack stocks and market as a whole. If market favors then this stock can be bought on dips for a move towards 126 – 128 on upside near the previous high levels.

Please note: Ashish Kyal’s views or levels might change based on market movements. To get the latest views subscribe to "The Financial Waves STU". For more information visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com