Market Voice: Deven R Choksey

'Don't expect a secular bull or bear trend'

Deven R Choksey, managing director, KR Choksey Shares and Securities, tells Krishna Merchant that the Nifty will continue to trade in a tight range in the near term. Edited excerpts:

Do you think the markets are due for a correction, or will they move up further?
I see markets going up gradually to scale new highs as we progress during the year. The Nifty is trading in a 100-point range of 5,562-5,455, and is not expected to move out of this tight band in the near term.

The secular bull or bear trend is not expected due to uncertain global environment. Foreign institutional investors (FIIs) have been pumping in money in new funds, but selectively.

What will be the preferred bets if markets were to trend higher?
There are plenty of mid-cap stocks that are showing good traction for growth. Among the frontline stocks, I am seeing higher amount of growth traction for ICICI Bank and Tata Motors, as they are available at a comparatively cheaper valuation, and there is a possibility of a further upside. I am also positive on BHEL and L&T on the back of growth in the capital goods segment.

The Volatility Index has been languishing near its all time lows. Do you expect a trend reversal soon?
I do not expect a trend reversal. The markets are not going to see a secular upside since not every stock is participating in the rally.

What is your call on the oil and gas sector?
The markets have caught a fancy for public sector oil marketing compnies. It appears to be more of exuberance under the rerating theory and less out of conviction.

I don’t think the government will completely de-regulate the diesel prices. Time and again, it has been reluctant in taking a concrete decision.