Powerful bear rally underway, discontent likely: Enam Sec

On the road ahead for the markets Chokhani said that this was not the beginning of a really long bull market. In fact, smart money was still not coming into India. Most investors, according to him, were waiting for a correction before entering the market. A powerful bear rally was underway and Chokhani believes that a powerful dip followed by a period of disappointment was likely. This dip, however, will set the stage for a sustained upmove, he said. In the short-term though, he believes surprises on the upside are possible. “Though there will be hiccups but long-term trends indicate that there will be an extended recovery in the developed world along with substantial growth in emerging markets.”

On specific themes and sectors

He believes that there is a good appetite for mid-caps in the market. Commodities are expensive in the short term, he opined. “Power, insurance and consumptions play the key themes,” he says adding that it is not the right price for entrance now. “Power is likely to be a big bet.”

Chokani opines that there is a need to focus on Natural Gas and Rupee levels. “The hike in rates will be consistent due to the economic movement.”

Source: Moneycontrol