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Last Updated : Feb 27, 2017 10:54 AM IST | Source: CNBC-TV18

Here are Sanjiv Bhasin's top trading ideas

In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Sanjiv Bhasin of IIFL shared his reading and outlook on the market and also gave recommendations on various stocks.

In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Sanjiv Bhasin of IIFL shared his reading and outlook on the market and also gave recommendations on various stocks.

Below is the verbatim transcript of Sanjiv Bhasin's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.

Latha: What is the sense you are getting on the markets itself? Do you think they will dither as they get closed to all-time highs or do you think we are going to see them cross them with ease?

A: The rally of this continues and most people who could have bought at that 7,900-8,000 have had the best two months --- this has been the sweetest February I have seen in many years. We could surprise on the upside till the 10th-11th of March, we are surely saying that new highs are there and then there will be a little bit of profit booking depending on the results, the outlook for a few days but we are in a new bull market and we think 10,000 by the end of June is definitely on the cards.

So notwithstanding that, we think new highs will see profit booking and market is seeing some consolidation but we continue to think that equities as an asset class will be an outperforming class for the remainder of 2017.

Anuj: What is your portfolio stance now among big sectors, where would you place your bets?

A: At these levels we are more bullish on certain stocks and sectors namely some of the goods and services tax (GST) related plays where Indian Hotel being a top pick over there. On the back that their numbers were better than expected, the rebranding of Vivanta and Taj, the move up from the specialty restaurants to the five-star level, which is again seeing a lot of traction on the upside. So Indian Hotel is our top pick. We have been bullish from Rs 110-112. It has moved up above 10 percent we still think it can surprise on the upside. We have a year-end target of Rs 145 to Rs 150. We are very bullish on the white good space with Voltas and Blue Star being two of our top picks there and some of the manufacturing plays with Thermax being a key outperformer which we think from these levels.

We are also overweight on Karur Vysya Bank in the banking space at these levels.

Latha: In the pharmaceutical space, today we are seeing a little bit of activity, would you venture anywhere? Cadila has been everyone’s favourite.

A: For us in the largecap space, it is rerating on Sun Pharma after the results which we thought had built in a lot of the negatives notwithstanding we think Halol will be a slight bit of an overhang but we think 15 percent upside in Sun Pharma from levels of Rs 650 is on the cards.

The other overweight isLupin, we think Lupin has the least exposure as far as the food and drug administration (FDA) issue and they have a very strong portfolio and pipeline in the next two years. So Lupin around this Rs 1,450-1,475 is our top overweight. On declines, we continue to be advocating buys on Biocon and Glenmark as two of the best playing pharma stocks notwithstanding that they have already moved up very sharply so you will have to wait for decline to buy both those midcap pharma stocks.

Latha: Is there anything in the housing finance space that you still like?

A: We are very bullish on Bajaj Finance on declines and we have been advocating buys there. For us, the small ticket Gruh Finance is an overweight and on the micro finance we are very bullish on Satin Credit Care but if it is just going to be housing then it has to be the largest mortgage lender HDFC on any decline for an outperformed rating.

Anuj: I remembered discussing Reliance with you. It was one of the leaders you said for the next rally but at Rs 1,220, do you think the run has been rather sharp, would you wait for a correction if you were to buy it fresh?

A: Yes and No, it is telling you that how much the left out feeling particularly from the offshore market is where people are now trying to buy their way into largecap heavyweights and with a gusto. You have never seen such sort of a move in Reliance accompanying by such high delivery volumes. So whether it is Reliance, it is Tata Consultancy Services (TCS) or it is HDFC, these are the three bellwethers and it is telling you that at any decline at least in largecaps will be a buying opportunity. So I would not say that it is prudent at these levels. If you want to play that on the trading side, you can maybe use some of the options but any decline would now tell you that Reliance is on the verge of a big breakout and which is going to be the bellwether for taking the Nifty higher. So if you want to play the Nifty, you have to be long Reliance and so on. Buying a dip or waiting for a dip may not be timing it perfectly.

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First Published on Feb 27, 2017 10:25 am
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