Experts see Nifty at 5400, advice sectors

It was a strong session for the markets, with the Nifty holding fort at the 5,300 level. The Nifty ended the day at 5,304, up 34 points. The Sensex shut shop at 17,694, up 120 points. For the week, the Nifty and Sensex closed up around 1%. The talking point of the day again was the volumes, with the turnover nearly touching Rs 1.2 lakh crore. The market breadth did not hold up too well. The advance-decline ratio was 4:5 in favour of declines. Nischal Maheshwari, Head of Research, Edelweiss, sees a breakout happening above 5,400 in the current run up. "We are seeing positive flows as far as FIIs are concerned. There has been a fair bit of buying which we are seeing in the markets. If you look at results, numbers seem to be quite good. I think upgrades are going to happen for earnings." As long as the Nifty does not break 5,160-5,200, the possibility exists that the market should breakout on the upside, said Vijay Bhambwani of bsplindia.com. "The markets are witnessing good amount of buying at lower levels. I would continue to watch 5,440 as a trend determining resistance, above which huge amount of base squeeze and fresh buying would come in." The market undertone remains bullish, said Sajiv Dhawan of JV Capital Services. "On every decline, you are seeing the markets rewarding those investors who buy the dips. Even on days of caution, the slippages are being bought into. The trend favours to buy on the declines unless you have some very poor results which at the movement are just not coming." Buy banks: In the short-term, Maheshwari feels investors can look at banks where the government is going to be infusing capital. "They are likely to run up much better. You have got a UCO Bank, United Western, and Dena Bank where the government has already announced that they are going to be infusing fresh capital. But on a longer-term story, we are very positive on State Bank of India. That remains our top pick in the banking sector." One can buy any banking stocks these days and make good trading profits, said Dhawan. "We have been very bullish on the Bank Nifty. That remains a buy on dips." Sell sugar: Sugar in the absolute short-term might remain under pressure, feels Bhambwani. "If you are a short-term player, who is playing on swings, it is time to maybe start taking profits, a minimum of 50-60% if not more. If the markets were suddenly to turn up on Monday, then some of these frontline counters like Balrampur Chini, Bajaj Hindusthan might just consolidate and then see some upmove or a healthy dead cat bounce. I think it is time to take money off the table partially."